A commercial bank has $80000 in deposits. There are $6,000 in actual resources, of which $2,000 are excess reserves. Describe the Rate of return
Q: 1.What is the money multiplier if the target reserve ratio of banks is 4%? 2. If the target reserve…
A: DISCLAIMER- “Since you have asked multiple question, we will solve the first 2 because they are…
Q: 2) Which of the following is(are) the attribute(s) of successful product development? O Time O…
A: Here we are given two multiple choice questions lets discuss each in detail one by one. [1] In first…
Q: Define what is a country’s gross domestic product (GDP) and list and explain its various components.
A: GDP is significant since it gives information about an economy's size and performance.Real GDP…
Q: .Why should MC curve cut MR curve from below to achieve producer's equilibrium?
A: a.Why should MC curve cut MR curve from below to achieve producer's equilibrium?
Q: do an Internet search of the famous words "irrational exuberance" and read a few articles. Post…
A: ans
Q: Suppose Kara maximizes her profits by hiring workers to produce hand-made soaps. Her soaps sell for…
A: Suppose Kara maximizes her profits by hiring workers to produce hand-made soaps. Her soaps sell for…
Q: Reason for an emergence of monopoly
A: A market arrangement known as a monopoly has just one vendor who has complete market control.…
Q: The figure below shows the industry demand curve and two possible industry supply curves in the…
A: Excess demand is when the quantity demanded is greater than the quantity supplied. Excess supply is…
Q: 1. According to Paul Hawkins, why is it no longer plausible for corporations to pursue the maxim…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: 0 P1 A LRAS YO Y1 B ******** LRAS YO Y1 SAS AD Real GDP SAS AD' SAS AD Real GDP PO P1 P P1 PO C LRAS…
A: Assume the economy starts in long-run equilibrium, then one day the securities exchange crashes,…
Q: a).Explain why allocating property rights might help solve the inefficient outcomes generated by…
A: Externalities occur when the market system does not deliver an efficient result. or the demand and…
Q: A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: Suppose that you can sell as much of a product (in integer units) as you like at $60 per unit. Your…
A: The difference between entire income and total costs is referred to as profit. The money made…
Q: 5. Calculate the effective rate corresponding to each of the following rates: a. 9% compounded…
A: Effective interest rate = (1+im)m -1 where i is nominal interest ratem is number of compounding…
Q: The table below shows hypothetical values of the expenditure components for the United States in…
A: The aggregate expenditure is characterized as the value of the finished goods in general and…
Q: Female workers tend to earn a lower wage compared to their male counterparts when performing the…
A: Female workers tend to earn a lower wage compared to their male counterparts when performing the…
Q: Question A1 The following regression results were obtained from a regression of Total Crime Rates in…
A: Regression equation: Y = -24569 + 628.9X Y = Total Crime Rate in US X = Life expectancy of SA R2 =…
Q: ity = XY + 3X. If prices of X and Y are Birr 4 and Birr 2 respectively; and if a consumer has an…
A: Utility refers to the satisfaction. The aim of the consumer is to maximize the utility given the…
Q: Advancing technology and falling trade barriers have created more international business…
A: Advancing technology and falling trade barriers have created more international business…
Q: Price/costs 150 140 130 120 110 100 90 BO 70 60 50 40 30 20 10 0 299 AC 123456789101112131415…
A: The equilibrium price is the main price where the plans of customers and the plans of makers concur…
Q: Discuss the global economy in the markets?
A: Trade between nations involves the exchange of products, services, capital, and technological…
Q: Q1. A and B are the only two sandwich shops serving in a small town. Each shop can choose to set a…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Assume that the price of oranges is $2 and the price of starfruit is $1. You have $10 of income to…
A: utility is the satisfaction derived from the consumption of goods and service . Total utility TU is…
Q: A homogenous good industry consists of two firms (firm 1 and firm 2). Their cost functions are cq₁…
A: A Simultaneous Move Game you observe in Oligopoly market A possible strategy is to maintain a high…
Q: (a). Explain the difficulties in regulating international banking. (b). Describe alternative forms…
A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…
Q: Where are nudges least likely to be useful O The choice is a very complicated one O A person has…
A: Nudge theory is an important part of behavioral economics. Nudge theory helps to alter the decisions…
Q: From the following data calculate the value of operating surplus S.No. (i) (ii) (iii) (iv) (vi)…
A: Operating surplus - It is an accounting concept used in corporate and governmental accounts as well…
Q: 2. When the potential money multiplier is 5, a $10,000 increase in demand deposits could support the…
A: Given The money multiplier is 5 Increases in demand deposite =$10,000 We have to calculate the…
Q: Suppose you have a 1,200,000 US dollar payable coming due in June and that the spot today is .98…
A: Foreign exchange: It is the level of exchanging of currency of one's economy in relation to another.…
Q: Suppose you are one of two producers of aluminium. You (firm 1) and your competitor (firm 2)…
A: When the two firms simultaneously optimize their outputs , each firm maximizes its profits taking…
Q: new firms enter a emand curve will monopolistically competitive industry, an individual firm's…
A: All firms produce the differentiated products in the monopolistically competitive market. These…
Q: If new firms enter a demand curve will monopolistically competitive industry, an individual firm's…
A: Monopoly refers to the market economy where only one firm enjoys the market power. It sets the…
Q: . Four mutually exclusive alternatives are available for purchasing a piece of construction…
A: Present worth is a proportionality strategy for analysis wherein a task's incomes are limited to a…
Q: Economics please help all 3 true or false and with explain
A: Since you have asked multiple question, we will answer first question for you. If you want any…
Q: If the analysis rate is 12%, compute the value of X that makes the two alternatives equally…
A:
Q: Which of the following would not increase consumption spending? O Decreased disposable income.…
A: Consumer spending or consumer expenditure refers to the total amount the consumer is spending on the…
Q: re to search + CD Page view | A Read aloud | Add text | Draw Highlight Figure 1.2 represents an…
A: A production potential curve depicts the combinations of two items or services that any economy is…
Q: 1 \ 2 a b c A 2,2 2,1 0,0 B 3,1 3,0 1,3 C 1,3 3,2 3,1 a) Eliminate…
A: There are two players in the game : Player 1 & Player 2 Strategy Set of Player 1 = { A, B , C }…
Q: What does it mean that money has a time value? Question 17 options: A sum of money keeps the…
A: Risk, return and inflation are the factors which affects the value of money over period of time. The…
Q: Respond to the following questions in a minimum of 175 words: . Consider a situation that you might…
A: Probability is the mathematical term for the likelihood that something will occur. Probability plays…
Q: The annual worth of an investment alternative computed at 10% interest rate is $500. What is the…
A: The annual worth of an investment at IRR is 0. The given AW is negative i.e., -$500, computed at 10%…
Q: The table below shows the payoffs for two firms competing through advertisement. Firm A and Firm B…
A: Nash equilibrium is the intersections of best responses of the all the player and it is non…
Q: Texas Popcorn Corporation is planning to fully automate it process. The company CEO is currently…
A: To find the best machine to choose from we will use the metric of present worth which is the…
Q: A. Economic profit is an indication that consumers are willing to pay more for a good or service…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: where K is capital, L is labor, and A is the state of technology. Suppose that the saving rate (s)…
A: We are given the situation of Solow growth model with technological progress which is labor…
Q: B. Population is less than resources and technology C. Population matches natural resources and…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Negative policy interest rates such as those used by the ECB, BoJ, SNB and some other central banks…
A: The Global Financial Crisis (GFC), sometimes known as the Financial Crisis of 2008, was a…
Q: Discuss the following statements: a. 'The quantity theory of money implies that money is neutral in…
A: Quantity theory of money shows the relationship between money supply and price level of output.
Q: Explain what is meant by the expression "robust model. Specifically, what would you tell a manager…
A: robust model A model is said to be robust when the output generated by the system is accurate…
Q: Problem 8. Suppose you want to estimate the effect of class attendance on student performance using…
A: ans
A commercial bank has $80000 in deposits. There are $6,000 in actual resources, of which $2,000 are
Step by step
Solved in 3 steps
- 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.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%?Commercial Banks both issue (as liabilities) and invest in (as assets) different Money Market instruments. Identify two of the money market instruments that are commonly used by Commercial Banks. For each instrument, indicate whether Commercial Banks issue them as liabilities or invest in them as assets. What are the characteristics of Money Market instruments that make them useful and attractive to Commercial Banks?
- 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?Suppose a bank's assets have an average duration of 3 years, and its liabilities have an average duration of 5 years. Since this bank has a ________ duration gap, a fall in market interest rates will _______ bank capital. Select one: A. positive; increase B. negative; decrease C. negative; increase D. positive; decreaseA group of college friends decide to start their own bank, LSU Community Bank, in rural Pennsylvania. In order to get started they put in a total of $10 million of their own money and borrow $40 million from a venture debt lender. (This is known as venture debt lending.) They accept $160 million in deposits from households and businesses in the community, and, in turn, make $90 million in loans. They also purchase $95 million of mortgage-backed securities and keep the remainder of their assets as reserves at the Philadelphia Federal Reserve District Bank. a. Show LSU Community Bank's balance sheet. b. What is LSU Community Bank's reserve-deposit ratio? c. What is LSU Community Bank's asset to equity ratio?
- A group of college friends decide to start their own bank, LSU Community Bank, in rural Pennsylvania. In order to get started they put in a total of $10 million of their own money and borrow $40 million from a venture debt lender. (This is known as venture debt lending.) They accept $ 160 million in deposits from households and businesses in the community, and, in turn, make $ 90 million in loans. They also purchase $ 95 million of mortgage-backed securities and keep the remainder of their assets as reserves at the Philadelphia Federal Reserve District Bank. a. Show LSU Community Bank's balance sheet. b. What is LSU Community Bank's reserve-deposit ratio? C. What is LSU Community Bank's asset to equity ratio? d. Suppose the housing market tanks and the market value of the bank's mortgage-backed securities falls by 10%. i. Show LSU Community Bank's new balance sheet. ii. By what percentage does the value of the bank's assets fall? iii. By what percentage does the value of the bank's…Assuming an economy have only two commercial banks in it banking system, Classic Bank and Prudent Bank. The following shows the balance sheet of the two banks as at 2019. Classic Bank Balance sheet as at December, 2019 GHSm GHSm Assets: Liabilities & Equity: Reserves 1,000 Deposits 3,000 Securities 2,000 Equity 7,000 Loans & Advances 1,000 Property, Plant and Equipment 6,000 . 10,000 10,000 Prudent Bank Balance sheet as at December, 2019 GHSm GHSm Assets: Liabilities & Equity: Reserves 600 Deposits 2,500 Securities 1,500 Equity 4,400 Loans & Advances 800 Property, Plant and Equipment 4,000 . 6,900 6,900 Assume a required reserve ratio of 10%. What is the maximum amount that the money supply can be expanded? What would be the effect of a fall in reserve ratio to 5%, on the maximum amount that the money supply can be expanded?Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. The following is the balance sheet for Garrett Bank, one of many commercial banks in a country. Assume a 10 percent reserve requirement. ASSETS LIABILITIES Reserves – $5,000 Demand Deposits – $20,000 Business Loans – $10,000 Equity – $5,000 Student Loans – $8,000 Government Loans – $2,000 TOTAL ASSETS – $25,000 TOTAL LIABILITIES – $25,000 2. Calculate Garrett Bank’s required reserves. Calculate the maximum amount of additional loans that Garrett Bank can make without selling its holdings of government securities. 3. Assuming that Garrett Bank and other banks now lend out all excess reserves, calculate the maximum possible change in demand deposits throughout the banking…
- Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. The following is the balance sheet for Garrett Bank, one of many commercial banks in a country. Assume a 10 percent reserve requirement. ASSETS LIABILITIES Reserves – $5,000 Demand Deposits – $20,000 Business Loans – $10,000 Equity – $5,000 Student Loans – $8,000 Government Loans – $2,000 TOTAL ASSETS – $25,000 TOTAL LIABILITIES – $25,000 Calculate Garrett Bank’s required reserves. Calculate the maximum amount of additional loans that Garrett Bank can make without selling its holdings of government securities. Assuming that Garrett Bank and other banks now lend out all excess reserves, calculate the maximum possible change in demand deposits throughout the banking…If a local bank decides to convert some of its U.S. Treasury securities into cash, which it will hold in its vault, reserves will ________, liabilities will ________, and owner’s equity will ________.