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What are the required reserves of People's National Bank? What is the max loan that the bank could extend?

The reserve requirement is 10% and the balance sheet of the People's National Bank looks like the accompanying example. Assets Vault Cash $20,000 Deposits at Fed 30,000 Securities 45,000 Loans 120,000 Liabilities Checking deposits $200,000 Net Worth 15,000

Public Comments

1. I won't give you the answer, but I will give you a clue. The limiting factor is assets not the reserve requirement.