Suppose a bank has $600,000 in deposits, a required reserve ratio of 5 percent, and bank reserves of $90,000. then the bank can make new loans in the amount of

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asked Apr 22, 2018 211k views

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Suppose a bank has $600,000 in deposits, a required reserve ratio of 5 percent, and bank reserves of $90,000. then the bank can make new loans in the amount of

Mathematics
high-school

Lobianco asked

by Lobianco

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1 Answer

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600,000×0.05=30,000
Reserve amount
90000+30000=120000
Loans
600000-30000=570000....answer

Chirag Patel answered Apr 28, 2018

by Chirag Patel

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