Write the required reserves of people national bank does

Reference no: EM13453035

Supposed that the reserve requirement is ten percent and the balance sheet of the People's National Bank? Does the bank looks like the accompanying examples.

ASSETS LIABILITIES

vault cash - $20,000checking deposits - $200,000

deposits at fed - 30,000net worth - 15,000

securities - 45,000

loans - 120,000

a) What are the required reserves of people national bank? Does the bank have any excess reserves? Required reserves are $20,000 and excess reserves are $30,000

b) What is the maximum loan that the bank could extend?

c) Indicate how the banks' balance sheet would be altered if it extended this loan.

Reference no: EM13453035

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