Abank reports reserves of $500,000, physical capital of $200,000, loans of $1,000,000, deposits of $1,000,000, and owners' equity of $500,000. if the desired reserve ratio is 5 percent, the bank's desired reserves are

$50,000

Explanation:

Data provided in the question:

Reserves reported by the bank = $500,000

Physical capital = $200,000

Loans reported = $1,000,000

Reported deposits =  $1,000,000

Owners' equity of $500,000

Desired reserve ratio = 5 percent

Now,

Desired reserve is calculated as:

Desired reserve = Deposits × Desired reserve ratio

on substituting the values, we get

Bank's Desired reserve = $1,000,000 × 5%

or

Bank's Desired reserve = $1,000,000 × 0.05

or

Bank's Desired reserve = $50,000

answer; lags, push the econ below the natural level of output;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.