Answer:
Explanation:
Given:
Fed:
Reserve = 9 % of their deposits
Bank:
Excess reserves = $18,000
Treasury bill sold = $9,000
Treasury bill which is called Tbills are a form of investment issued by banks; it is also a way of loaning money to the government through the central bank.
So $9000 sold as treasury can be viewed as a loan.
Bank reserves are a commercial bank's cash holdings, that are physically held by the bank, and deposits held in the bank's account with the central bank.
Total amount that bank lent out = $18000 + $9000
= $27000