Question

Refer to the data. Assuming the bank loans out all of its remaining excess reserves as a checkable deposit, and has a check cleared against it for that amount, its reserves and checkable deposits will now be:

Answer 1

Answer: $22,000 and $105,000 respectively.

Explanation:

When the bank loans out all of its remaining excess reserves as a checkable deposit, and has a check cleared against it for that amount, its reserves and checkable deposits will now be respectively $22,000 & $105,000.