Commercial banking balance sheets

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Reference no: EM13746554

Commercial banking balance sheets. First, use a T-account to show how a $100 deposit affects the balance sheet. Separate the funds into required reserves and excess reserves using a required reserve ratio of 0.1. Second, demonstrate what happens to the balance sheet when the bank loans out all of the excess reserves. Third, demonstrate what happens to the balance sheet after loaned funds are deposited in a different bank.

Reference no: EM13746554

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