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Macroeconomics problem

  1. May 3, 2012 #1
    1. The problem statement, all variables and given/known data

    http://img854.imageshack.us/img854/4175/macroqr.jpg [Broken]

    2. Relevant equations



    3. The attempt at a solution

    My guess is 12% of $15000 but that is slightly over $12000. How do the securities and loans play in the calculations?

    BiP
    1. The problem statement, all variables and given/known data



    2. Relevant equations



    3. The attempt at a solution
     
    Last edited by a moderator: May 6, 2017
  2. jcsd
  3. May 5, 2012 #2
    A reserve requirement is a percent of cash a bank must keep in relation to its deposits.

    For example, if a guy deposits $100, the bank must keep $12, and can loan out the other $88.


    Securities are assets the bank owns, like shares or bonds. They can be sold like anything else to bring in cash, but the problem explicitly says that they will not sell these.

    From this, I think you can solve it if you give it some thought. Give it a try and get back to us.
     
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