TABLE C
ASSETS |
LIABILITIES |
REQUIRED RESERVES $144,000 |
DEMAND DEPOSITS $3,600,000 |
EXCESS RESERVES ? |
|
TOTAL RESERVES $150,000 |
|
GOVT. SECURITIES $550,000 |
|
LOANS $2,900,000 |
|
TOTAL ASSETS $3,600,000 |
TOTAL LIABILITIES $3,600,000 |
Please complete Table C.
45. If the Fed purchases $50,000 in securities from the bank, the bank could lend out?
A) $50,000
B) $56,000
C) nothing it will have a reserve deficiency
D) $125,000
46. If the Fed sells $50,000 in securities to this bank, the money supply will:
A) expand by $1,000,000
B) expand by $1,400,000
C) contract by $1,000,000
D) contract by $1,400,000
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