# Macroeconomics problem

## Homework Statement

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

## 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

## The Attempt at a Solution

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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.