How much amount will the bank be able to loan out

Assignment Help Macroeconomics

Reference no: EM13218926

The Cal Poly Bank has the following balance sheet Assets Liabilities_____________________________ Cash (reserves) $10,000 Deposits $150,000 Deposited at the Fed $9,000 Loans $181,000 Capital $50,000________________________ Total $200,000 $200,000 The required reserve ratio on all deposits is 6%.

A.) What, if any, are this banks, The Cal Poly Bank, excess reserves?

B.) How much amount will this bank be able to loan out?

C.) If there is no currency drain and all funds loaned out by this bank are deposited back in this bank, what are the bank's excess reserves, if any, after the new deposit has been made and how much new loan this bank might be able to create?

Reference no: EM13218926

Questions Cloud

If a firm has created value is it always able to capture : If a firm has created value is it also always able to capture that value How does a firm create value and then what must it be able to do to capture that value Please provide an example of a firm that has been able to create value.

Current state of the human service industry : What are the gretest concerns about the current state of the human service industry, explain a viewpoint regarding the ideology that human service workers should be advocate for social justice,

Illustrate the law of large numbers : Does the coin flipping process you just completed illustrate the Law of Large Numbers? Why or why not?

Elements of an effective medical office financial policy : What are the basic elements of an effective medical office financial policy? In what ways do medical office procedures support financial policies? What are the consequences when office procedures do not support the financial policy?

How much amount will the bank be able to loan out : If there is no currency drain and all funds loaned out by this bank are deposited back in this bank, what are the bank's excess reserves, if any, after the new deposit has been made and how much new loan this bank might be able to create.

Provide an example of a human behavior : Provide an example of a human behavior that is considered deviant in one society, but is not considered devaint in others. What are the factors that have contributed to this societ'y perspective of the deviant behavior?

What are universal motives : What are universal motives? What are some examples of universal motives?

Explain the modified accelerated cost-recovery system : Cathy has one year left before she completes her degree in industrial engineering. She is spending this summer working for her family's firm, MMM (Molehill & Mountain Movers). MMM runs a fleet of heavy construction equipment and sells gravel for r..

Provider liable for the actions of his or her clerical staff : Do you believe it is reasonable to hold a provider liable for the actions of his or her clerical staff? Support your opinion with an example.

User Account

All Pages