The answer I came up with is =(1-0.8)*14 Time Remaining: 00:25:03 Submit a Quiz:

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The answer I came up with is =(1-0.8)*14 Time Remaining: 00:25:03 Submit a Quiz: ASSESS Chapter 15 Quiz 50125 (3 complete) This Quiz: 100 pts poss This Question: 4 pts A bank's only liabilities are $14 million in transactions deposits. The bank currently meets its reserve requirement, and it holds no excess reserves. The required reserve ratio is 0.09 Assuming that its only assets are legal reserves, loans, and securities, calculate the value of loans and securities held by the bank. The value of loans and securities held by the bank is s million. (Enter your response rounded to two decimal places) Enter your answer in the answer box. 2,062

Explanation / Answer

Value of loans and securities held by the bank = $ 14 million / (1 - 0.8) = $ 14 million / 0.2

                                                                                    = $ 70 million

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