ECN 211: Fall Semester, 2010Review Questions Chapter 15____1.Which of the following would notappear on the asset side of a commercial bank balance sheet?a.Excess Reserves.b.Checkable deposits.c.Loans.d.Government bonds.
____2.Assume a bank has total checkable deposits of $100,000 and $80,000 is available to make new loans after the legal reserve requirement has been met. The legal reserve requirement is:
____3.The higher is the legal reserve requirement:
____4.The amount of reserves held by a bank in addition tothe legally required amounts is known as:
____5.Assume that First National Bank has checkable deposits of $20 million. If the required reserve ratio is 20 percent and the bank is fully loaned up, the bank will keep what amount of excess reserves?a.$0 million.b.$4 million.c.$10 million.d.$16 million.e.$20 million.
____6.If your bank receives a checkable deposit $20,000 and, as a result, can make new loans of $18,000, then the legal reserve requirement must be: