Bank of Alexandria initially kept a 10% reserve.
There are no excess reserves. Pay attention to the liquidity crunch in March
Bank of Alexandria has sold $50m worth of bonds in response to pandemic fears
Bank of Canada Open Market Holdings
a) Use the T account to check the balance change of Alexander’s bank account
This table reflects bond transactions.
b) Use the T account to check the balance change of the Canadian bank account
This table reflects bond transactions.
C) Stores reopen after a month of lockdown. to
Bank of Alexandria starts lending to maximize profits
customer. How much can I borrow? Be sure to use
The T account shows this change in its balance sheet
You can borrow them individually.
ie. Assume that all commercial banks want 10% reserves
There is no special reserve, and the currency-to-deposit ratio is 0. There is no excess reserve, and the coin-to-deposit ratio is 0.
Once multiple deposits have been created, you can access the internet.
Changes in Balance Sheets of All Commercial Banks
system? Show T Account
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