The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 2 percent and there is no currency drain. What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? >>>Answer to 2 decimal places. The total quantity of loans after the banks have lent all their excess reserves is $ million Assets Reserves at the Fed Cash in vault Securities Loans Liabilities (millions of dollars) 20 15 65 85 Checkable deposits Savings deposits 100 85

ECON MACRO
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ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Banking And The Money Supply
Section: Chapter Questions
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The table shows the commercial banks' balance sheet (aggregated over all the banks). The
commercial banks' desired reserve ratio on all deposits is 2 percent and there is no currency
drain.
What is the quantity of loans and the quantity of total deposits when the banks have no excess
reserves?
>>>Answer to 2 decimal places.
IIIS
The total quantity of loans after the banks have lent all their excess reserves is $ million.
Assets
Reserves at the
Fed
Cash in vault
Securities
Loans
Liabilities
(millions of dollars)
20
15
65
85
Checkable deposits
Savings deposits
100
85
Transcribed Image Text:The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 2 percent and there is no currency drain. What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? >>>Answer to 2 decimal places. IIIS The total quantity of loans after the banks have lent all their excess reserves is $ million. Assets Reserves at the Fed Cash in vault Securities Loans Liabilities (millions of dollars) 20 15 65 85 Checkable deposits Savings deposits 100 85
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