2-A bank has deposits of $ 6 000 000 , its total actual reserves are $1 200 000 and the legal reserve ratio is 0.12 . (a) What is the amount of reserves ? (b) What is the amount of excess reserves ? (c) If the reserve ratio changes to 0.10 what would be the effect on reserves and total actual reserves ,amount of excess reserves remaining the same?

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A: To avoid bank charges Travis has to clear all his dues and maintain a minimum balance of $0 so, the…

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A: The Reserve ratio is used to increase or decrease the money supply in an economy. It decreases to…

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A: Mandatory Mutual Money : This is the sum of money pooled by the promoters of a financial entity…

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A: The bank is an institution that accepts deposit from the public, offer loans, and provide various…

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A: Bank capital shows the net worth of any bank by checking the bank's assets and liabilities.

Q: The initial deposit are $110 million and legal reserve ratio is 12%  Find the value of money…

A: The information being given to us is as follows:- Initial deposit = $110 million Reserve ratio = 12%…

Q: Refer to the information provided in Table 10.3 below to answer the questions that follow. Table…

A: Excess reserves = Actual reserves - Required reserves Excess reserves = $300,000 - $100,000 Excess…

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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A: Overall growth in deposits = Initial deposit * Multiplier

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A: Rbi is india central bank which is basically responsible for the supply and issue of the indian…

Q: MC Qu. 35-146 (Algo) Refer to the accompanying table. If... Type of Deposit Reserve Requirement…

A: Given that Savings deposits=$60 million Checkable deposits= $40 million   Required Reserve Ratio =3%

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A: A financial institution is an institution that deals with monetary and financial transactions. These…

Q: 22.  The Bank of Ohio has $1 million in deposits and $200,000 in reserves. If excess…

A: Answer: Required reserve = Total reserve - Excess reserveRequired reserve=200,000 - 150,000Required…

Q: Suppose Aurumville Bank has $20300 in assets, and its total capital equals $11000. What is the total…

A: Assets = $20,300 Capital = $11,000 ----------------------

Q: c14. You have savings accounts at two separately FDIC insured banks, ABC Bank and XYZ bank. At ABC…

A: Given the deposit amount in ABC bank = $200000 The deposit amount in XYZ bank = $60000

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A: Require reserves are the reserves that commercial banks hold as per the requirement of central bank.

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A: To find : Steps taken by RBI to control credit.

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A: Saving to withdraw represents which function of money Correct option (C) Store of Value: Because, A…

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A: Given, Reserves = $300 Deposits = $1800 New deposit = $500 Reserve Ratio = (Reserves / Deposits) *…

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A: A time deposit occurs when a consumer makes a deposit and agrees not to withdraw the funds until a…

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A: the excess reserve formula is given by total demand deposited - required reserve

Q: Table 14.1: FIRST COMMERCIAL BANK Asset Liabilities $150,000 S100,000 S1,000,000 $200,000 Deposits…

A: Answer is given Below

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A: Answer:- (b) $250,000.

Q: 21.  Republic Bank has $2 million in deposits and $250,000 in reserves. If the required…

A: Given:  Deposits = $2 million Reserves = $250,000 Required Reserve Ratio = 10%

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A: Bank assets allude to the things possessed by a bank that assistance to bring esteem. Bank assets…

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A: In a market, banks generally owns equity to make banking transactions and to operate the business.

Q: Type of Deposit Reserve Requirement Checkable Deposits $7.8 - 48.3 Million 3% Over $48.3 Million 10…

A: Required reserve and reserve ratio are positively related to each other. It means as the reserve…

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A: Answer-

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A: Here, the given table shows the balance sheet of a bank and there is 10% reserve requirements in the…

Q: 18) A single commercial bank must meet a 25% reserve requirement. If it initially has no excess…

A: We have required reserve ratio = RRR = 0.25 and cash deposit = 2000