Calculate this bank actual reserves on hand

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Reference no: EM132060200

Question: For the last three questions of the assignment, consider Alpha Bank, which has the following (partial) balance sheet information:

Cash $25,000

Checking accounts $125,000

US government bonds $10,000

Deposit in the Fed $50,000

Savings accounts $20,0000

  1. Calculate this bank's actual reserves on hand, carefully following all numeric instructions.
  2. Calculate the maximum amount of new money Alpha Bank can create on its own, carefully following all numeric instructions.
  3. Calculate the maximum amount of new money the entire banking system can create, given this information, carefully following all numeric instructions.
  1. Answer: ___________
  2. Answer: ___________
  3. Answer: ___________

Reference no: EM132060200

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