The bank can safely expand its loans by what amount

Reference no: EM13220734

Assuming a required reserve ratio of 20%, answer the following:

ASSETS
Reserves $40,000
Loans 70,000
Securities 50,000
Property 400,000

LIABILITIES + NET WORTH
Checkable deposits $100,000
Stock shares 460,000

a. What is the amount of excess reserrves?
b.This bank can safely expand its loans by what amount
c.by expanding its loans by this amount in part (b), its checkable deposits would expand to what amount (if all loans were made to checking account customers)?

Reference no: EM13220734

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