Bank of Sin City has $250 million in deposits. Bank of Sin City is meeting its reserve requirement and has no excess reserves. It has $10 million in reserves. Bank of Sin City faces a required reserve ratio of a) 1.25%. b) 4%. c) 20%. d) 37.5%.
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Bank of Sin City has $250 million in deposits. Bank of Sin City is meeting its reserve requirement and has no
a) 1.25%.
b) 4%.
c) 20%.
d) 37.5%.
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- How much money is created by a bank with $20 million in assets if it lends out half of its assets with a required reserve ratio of 10%. Question 6 options: $100,000,000 $1,000,000,000 $10,000 $50,000,000A bank has outstanding loans of $7,500, reserves of $2,500, and deposit liabilities of $10,000. If the required reserve ratio is 10%, this bank: A. Is holding excess reserves of $1,000 B. Is in a position to make a new loan for $1,500 C. Is in a position to make a new loan for $2,500 D. Has less reserves than requiredAssuming that the reserve ratio is 10%, what amount of excess reserves are held by with the bank balance sheet listed below? Assets Liabilities & Net Worth Reserves $280,000 Checking deposits $2,800,000 Loans Outstanding $2,920,000 Total $3,200,000 Net Worth Stockholders' Equity $400,000 Total $3,200,000 a. $240,000 b. zero c. $320,000 d. $280,000
- Required reserves of banks are a fixed percentage of their a. deposits. b. All of these responses are correct. c. loans. d. assets.19. Bank of New City has $250 million in deposits. Bank of New City is meeting its Reserve requirement and has no excess reserves. It has $50 million in reserves. Bank of New city faces a required reserve ratio of: 25%. 4%. 20%. 5%.If a bank currently has $10,000 Excess Reserves, $20,000 Required Reserves, and $30,000 Actual Reserves. What is the maximum amount of loans the bank could make? Multiple Choice $30,000 - up to its Actual Reserves $20,000 - up to its Required Reserves $10,000 - up to its Excess Reserves Under the above conditions, the bank could not make any additional loans
- If the required reserve ratio is 10 percent and a bank receives a new deposit of $100, this bank: A. Must increase required reserves by $10 B. Will be able to make new loans up to a maximum of $90 C. Will initially see its total reserves increase by $100 D. All of the above are correctIf $2,000 is withdrawn from the bank by a customer, the bank's Assets and liabilities decrease Assets rise Liabilities decrease and assets rise Assets decrease and liabilities riseSuppose a bank has a total deposit of $748 million. If the bank’s required reserves equal $253 million, total loans equal $368 million, then the bank has excess reserves of: Group of answer choices $109 million. $115 million. $127 million. $380 million. $495 million.
- Suppose a credit union has checkable deposits of $500,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $5,000, then its actual reserves are Multiple Choice $55,000. $45,000. $5,000. $50,000.Sarah deposited in her checking account in bank A 10 million Dirhams. If the bank has zero dirhams in reserves and if the reserve ratio is 15 percent, then the bank has a. Excess reserves of 5 million Dirhams b. Excess reserves of 1,5 million Dirhams c. Required reserves of 8.5 million Dirhams d. None of the above.A chartered bank has $1 million in deposits and $40,000 in desired reserves. Its excess reserves are initially zero. a. The reserve ratio in the banking system is .......%. b. If a further $100,000 is deposited in this bank then the bank's desired reserves increase by $.......while the bank's excess reserves increase by $........
