Assume that the bank of ecoville has the following balance sheet and
Prepare a two- to three-page analysis by answering the questions below. Assume that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place: BALANCE SHEET FOR ECOVILLE INTERNATIONAL BANK ASSETS LIABILITIES Cash $33,000 Demand deposits $99,000 Loans $66,000 Now assume that the Fed lowers the reserve requirement to 8%. What is the maximum amount of new […]