Financial Institutions Management: A Risk Management Approach 10th Edition by Anthony Saunders Solu
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Panel B: Balance Sheet after All Changes Resulting from Decrease in Reserve Requirement
Federal Reserve Bank
Assets Liabilities
Securities $60m Reserve accounts $60m
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Bank Three
Assets Liabilities
Loans $690m Transaction deposits $750m
($750m - $60m) ($60m x 0.08)
Reserve deposits 60m
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