e banking system has $8,000 in reserve, $72,000 in loans, and $80,000 in deposits. Currently the reserve requirement is 10%. a. If the Fed lowers reserve requirement to 5%, the banking system converts all excess reserves to loans, but borrowers return only 50% of these funds to the banking system as deposits. What is the maximum amount of loans the banking system could make

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A: As per given question:-   Type of deposit/aggregate Amount (Rbn) Bank notes and coins 57…

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A: NOTE:  Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

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A: Given that the Bank of Canada bought a $10 million government bond from a member of the public.  rr…

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A:

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A: Given the required reserve ratio  = 10% Reserve amount = 1000 Deposit amount = 7000

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A: Here we calculate the following terms by using the given information so the calculation of the…

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A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

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A: Here we calculate the following questions by using the given information and conclude the answer so…

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A: Reserve ratio is the percentage of total bank deposits that depository institutions hold for…

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A: We have given rr=0.08 and deposits = 10,000.

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A: Largest possible increase in money = Initial increase in money supply * money multiplier. Money…

Q: Please help me to answer part B  THANKS

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A: Target Required reserve ratio = 8% Current required reserve ratio = 10%  Deposit = $500

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A: The required reserve can be calculated by using the following formula.

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A: R = 10% Deposit = 9,000

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A: Excess reserves before sale = 100000*25 % - 25000 = $0

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A: Brief about above parts- Dollar value of Reserve = 20% of deposit = 20% of $100000 = $20000 Here the…

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A: Financial institutions must maintain a certain amount of bank reserves to meet central bank…

Q: Assume that a bank has on its asset side reserves of 1000 and loans of 6000 and on itsliability side…

A: Following are the values. Reserves = 1000 Loan = 6000 Deposits = 7000 Required reserve ratio = 10%