(hand written) Currency$150 billion$400 billion$1,200 billionBank reservesCheckable depositsTime deposits$2,400 billion$60 billionExcess reservesCalculate the values for the currency-to-deposit ratio, the ratio of total reserves to deposits, the monetary base, the M1 money multiplier, and the M1 money supply.The currency-to-deposit ratio is|. (Enter your response rounded to two decimal places.)

Currency deposit ratio means the relationship between cash amount hold by person and maintain in…

Answered: $150 billion Currency Bank reserves…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assets- reserves: 75000 loans : 430000 liabilities : deposites : 500000 net worth : 5000 a) Suppose that a bank has the following balance sheet and you deposit $5000 in currency into your cheque account at such bank. Use a T-account to show the initial impact of this transaction on the bank’s balance sheet. What is the impact of this transaction on M1? (b) If the bank holds a reserve ratio of 0.1, what is the maximum amount the bank can loan out. Suppose that the bank intends to loan out the maximum amount it can. Show the impact of the loan on the balance sheet.
58. Which of the following is/are cash equivalents?I. 180-day investment in a money market dated August 1, 2021 and purchased on November 15, 2022, P25,000II. Postal Money Order, P60,000III. 90-day treasury bill, P50,000IV. Two-year treasury note dated February 15, 2020, and acquired on December 1, 2021, P120,000. a. I and III b. I, II and III c. I, II, III and IV d. I, III and IV
Q25 Examine the chart below which contains Bank 1’s balance sheet. If the legal reserve requirement is 40%, then excess reserves are?: Assets Liabilities Total Reserves ? Demand Deposits $600,000 Loans $300,000 Question 25 options: a) $360,000 b) $60,000 c) $240,000 d) $120,000
A bank has $770 million in checkable deposits. The bank has $85 million in reserves. If the reserve requirement is 10%, the bank's required reserves are _____________ and its excess reserves are _____________. A. $85 million; $0 B. $770 million; $85 million C. $89 million; $21 million D. $77 million; $8 million
A new bank has vault cash of $1.7 million and $5 million in deposits held at its Federal Reserve District Bank. a) the required reserves ratio is 8 percent, approximately what dollar amount of deposits can the bank hold? (Answer in millions) Bank deposits $Type your answer here million b) If the bank holds $72 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied? (Round answer to 1 decimal place, e.g. 5.1.) Required reserves ratio Type your answer here
20 - If the exchange rates have risen, the value of the (forward) checks and debt securities will increase. To which account is this increase in value recorded?A) 656. Foreign Exchange Losses accountB) 100. Cash accountC) 646. Foreign Exchange Profits accountD) 950. Currencies in the Safe Deposit AccountE) 612. Other Discounts account
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% a. What, if any, are this bank's excess reserves? b. How much new amount of loan will this bank be able to create because of the excess reserves?
Question 1 CP Development Limited is preparing its statement of financial position as of December 31, 2023. There are some issues regarding the correct classification of the following: Investment of $ 150,000 in the US treasury bills. The maturity date will be February 18,2024. Prepaid rent of $ 72,000, covering January 1, 2024 to December 31, 2025.   Notes payable $ 600,000 issued on December 31, 2023. The notes will be paid in cash installments of $ 66,000 each on De 31 The first installment (principal repayment 60,000, interest expense 6,000) will be paid on December 31, 2024.   Deferred revenues $36,000 for services to be performed in 2024.   Investment in shares of Barlockers is $ 240,000. The company plans to sell half of Barlocker’s' shares by 2024.   Prepare a statement of financial position as of December 31, 2023 with proper classifications & sub-classifications based on the information given above and together with the following accounts: Land $300,000;…
11. Bank West's Balance Sheet Assets    Liabilities Cash $600 Deposits $20 000 Deposits at Bank of Canada $700 Capital $1 100 Loans and Mortgages $19 800 $21 100 $21 100 TABLE 26-3Refer to Table 26-3. Assume that Bank West is operating at its target reserve ratio and has no excess reserves. If Bank West receives a new deposit of $1500, it can immediately expand its loans by ________ while maintaining its target reserve ratio. $1478 $1356.50 $1436 $1402.50 $1410
Assets Liabilities Reserves: $30,000 Demand Deposits: $100,000 Loans: $70,000 Equity (net worth): $2,000 Property: $2,000 Assume the reserve requirement ratio is 20%. C. Assume that Elliot raises $5,000 in cash from a yard sale and deposits the cash in his checking account at the Bank of America. By how much does the money supply immediately change as a result of Elliot's deposit? D. Calculate the maximum change in demand deposits in the banking system as a whole resulting from Elliot's deposit. Show your work. E. If the Bank of America is not meeting the reserve requirement, what action can it take to meet the reserve requirement without calling in loans or selling property?
A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following ratios of its capital: CET1 = 7% Tier 1= 7.50% Tier 1+2= 9% Under Basel 2, what is the maximum, it can pay out in dividends? a $0.00 b $400,000.00 c $800,000.00 d $1,200,000.00
A3) Finance Currently, the GBP/USD rate is 1.5050 and the three-month forward exchange rate is 1.5269. The three-month interest rate is 6.2% per annum in the U.S. and 4.1% per annum in the U.K. Assume that you can borrow £1,000,000 or its equivalent in USD. How much do you make/lose if you borrow the local currency and invest abroad? (USD, no cents)

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