What is the largest loan that the bank can make on deposit

Reference no: EM13236558

Suppose that a bank's customer deposits $4,000 in her checking account. The required loan that the ratio is 0.25. What are the required reserves on this new deposit? What is the largest loan that the bank can make on the basis of the new deposit? If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit?

Reference no: EM13236558

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