A banking institution has $80000 in deposits. There are $6,000 in actual reserves, of which $2,000 are compliance with generally accepted accounting. Describe the RRR
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Q: A commercial bank has $80000 in deposits. There are $6,000 in actual resources, of which $2,000 are…
A: The necessary reserve ratio RRR - The amount of reserves that a bank must hold as a percentage of…
A banking institution has $80000 in deposits. There are $6,000 in actual reserves, of which $2,000 are compliance with generally accepted accounting. Describe the RRR.
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- Balance sheet of the Summer bank Assets Liabilities Cash $ 8,000 Deposited with the Fed $ 6,000 Loans $ 116,000 Deposits $ 80,000 Capital $ 50,000 Total $ 130,000 Total $ 130,000 The required reserve ratio (RRR) on all deposits is 8% How much new amount of loan will this bank be able to create with the RRR of 5%?Money Market Mutual Fund Balances Held by Businesses $100 Money Market Mutual Fund Balances Held by Individuals 140 Currency in Banks 10 Currency in Circulation 60 Savings Deposits, Including Money Market Deposit Accounts 70 Large-denominated ($100,000 or more) Time Deposits 180 Small-denominated ($100,000 or less) Time Deposits 100 Checkable Deposits 70 Refer to the table. The value of the near monies that are part of M2 is Multiple Choice $310. $140. $70. $320.You have been promoted to head of Treasury and Investment Management at Ecobank andhave been handed information on a number of issues for which immediate answers are required.For each excerpt from the issues presented below answer the associated question(s):(i) Ecobank holds ¢500 million T-Bill but is in short of cash. It needs cash to meet therequirement of a customer who has come to withdraw ¢400 million. You have beenasked to approach Barclays Bank to sell the T-Bill for ¢495 million with agreementto repurchase within 4 working days.(a) How much in cedis does Ecobank lose in this transaction(b) What is the Repo Rate on this transaction?
- A commercial bank has actual reserves of $29,000 and checkable-deposit liabilities of $35,000, and the required reserve ratio is 0.05. This bank can loan out $____ at the moment.it required reserve ratio (RRR) is 25%, the money multiplier isMoney Market Mutual Fund Balances Held by Businesses $100 Money Market Mutual Fund Balances Held by Individuals 260 Currency in Banks 10 Currency in Circulation 60 Savings Deposits, Including Money Market Deposit Accounts 90 Large-denominated ($100,000 or more) Time Deposits 180 Small-denominated ($100,000 or less) Time Deposits 120 Checkable Deposits 70 Refer to the table. The value of the near monies that are part of M2 is
- Oscar withdraws $100 from his checking account and deposits into his savings account. The transaction causes MI to _______________and M2 to __________________. (increase, decrease, stay the same)Money Market Mutual Fund Balances Held by Businesses $ 100 Money Market Mutual Fund Balances Held by Individuals 220 Currency in Banks 10 Currency in Circulation 60 Savings Deposits 50 Large-denominated ($100,000 or more) Time Deposits 180 Small-denominated ($100,000 or less) Time Deposits 80 Checkable Deposits 70 Refer to the table. The value of the near-monies that are part of M2 is Multiple Choice $300. $480. $630. $530.19) Vault cash is equal to $8 million, deposits by depository institutions at the central bank are $2 million, the monetary base is $40 million, and bank deposits are $90 million. The money multiplier is equal to A) 2.5. B) 3.0. C) 4.0. D) 5.0. Answer: B Please give the process of calculation
- Coin Bank has deposits of $350 million. It holds reserves of $30 million and government bonds worth $70 million. If the bank sells its loans at market value of $400 million, what will its total assets equal? $500 million $750 million $450 million $380 millionAssets Liabilities Reserves $ 1,500 Loans $ 3,500 Initial Deposit $ 5,000 Assume required reserve ratio is 10 percent and that 100% of all the loans are deposited as new deposits. ii. Calculate the deposit and credit multiplier.If R = 25%, actual reserves are $450 and checkable deposits are $1,800, then the monetarymultiplier is ____, required reserves are $____, excess reserves are $____, and the bankingsystem could potentially expand the money supply by $____.