Which equation below and solution for X does the model represent??
2 answers:
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A.) The current reserve ratio is given by the fraction of the bank's total deposits held in reserves.
Given that the bank's total deposits is $7,200 and the reserves is $1,600, the current reserve ratio is given by:
b.) The loan portfolio is given by (total deposit - reserves) / total deposits
Thus, the loan portfolio of the given bank is given by:
Given that the bank's total deposits is $7,200 and the reserves is $1,600, the current reserve ratio is given by:
b.) The loan portfolio is given by (total deposit - reserves) / total deposits
Thus, the loan portfolio of the given bank is given by: