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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

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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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

User Lobianco
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1 Answer

4 votes
600,000×0.05=30,000
Reserve amount
90000+30000=120000
Loans
600000-30000=570000....answer
User Chirag Patel
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