Consider the following T-account for a bank:
$\begin{array}{|ll|ll|}
\hline\text { Assets } && \text { Liabilities } \
\hline \text { Reserves } & \$ 1,000 & \text { Deposits }& \$ 5,000 \
\hline \text { Loans } & \$ 4,000 & & \
\hline
\end{array}$ If the required reserve ratio is 10 percent,the bank at this point can make no more loans.

Question

Consider the following T-account for a bank:
 $\begin{array}{|ll|ll|}
\hline\text { Assets } && \text { Liabilities } \
\hline \text { Reserves } & \$ 1,000 & \text { Deposits }& \$ 5,000 \
\hline \text { Loans } & \$ 4,000 & & \
\hline
\end{array}$ If the required reserve ratio is 10 percent,the bank at this point can make no more loans.

Quizplus · Accepted Answer

The Answer of Consider the following T-account for a bank:
 $\begin{array}{|ll|ll|}
\hline\text { Assets } && \text { Liabilities } \
\hline \text { Reserves } & \$ 1,000 & \text { Deposits }& \$ 5,000 \
\hline \text { Loans } & \$ 4,000 & & \
\hline
\end{array}$ If the required reserve ratio is 10 percent,the bank at this point can make no more loans.

Consider the Following T-Account for a Bank If the Required Reserve Ratio Is 10 Percent,the Bank at }