Please answer correct calculation please answer correct both are questions please answerDon't answer by pen paper plz What are checkable deposits (Y) and excess reserves (X)?Table 2Required ReservesExcess ReservesLoansReserve Ratio$2,500,000, and $2,000,000Question 33O $500,000 and $400,000O $2,000,000 and $1,800,000O $0 and $200,000AssetsO $20 millionO $108 millionPiggy Bank Balance SheetO $12.5 millionO $0Using Table 2, assume the Federal Reserve increased the money supply andcheckable deposits (Y) were deposited in this bank, in theory, how much moneycould be created?Liabilities$500,000 Checkable Deposits$X$020%SY

Excess reserves will be computed as total reserves minus required reserves. Money multiplier will be…

What are checkable deposits (Y) and excess reserves (X)? Table 2 Required Reserves Excess Reserves Loans Reserve Ratio O $2,500,000, and $2,000,000 $500,000 and $400,000 Question 33 Assets O $2,000,000 and $1,800,000 O $0 and $200,000 O $20 million O $108 million Piggy Bank Balance Sheet $12.5 million $0 $500,000 Checkable Deposits $x Using Table 2, assume the Federal Reserve increased the money supply and checkable deposits (Y) were deposited in this bank, in theory, how much mon could be created? Liabilities $0 20% SY

What are checkable deposits (Y) and excess reserves (X)? Table 2 Required Reserves Excess Reserves Loans Reserve Ratio O $2,500,000, and $2,000,000 $500,000 and $400,000 Question 33 Assets O $2,000,000 and $1,800,000 O $0 and $200,000 O $20 million O $108 million Piggy Bank Balance Sheet $12.5 million $0 $500,000 Checkable Deposits $x Using Table 2, assume the Federal Reserve increased the money supply and checkable deposits (Y) were deposited in this bank, in theory, how much mon could be created? Liabilities $0 20% SY

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Monetary System

Section: Chapter Questions

Problem 5PA

See similar textbooks

Similar questions

In a program of deposit insurance as it is operated in the United States, what is being insured and who pays the insurance premiums?
270 Q3 (No HANDWRITING): What are the “Reserves” and compare between Contingency reserves and Management reserves? Cite an example for each type.
It is not unusual to find a business that displays a signsaying “no personal checks, please.” On the basis of thisobservation, comment on the relative degree of liquidityof a checking account versus currency
Stealth bank has deposits of $300 million. It holds reserves of $20 million and has purchased government bonds worth $300 million. The bank's loans, if sold at current market value, would be worth $600 million. What does Stealth bank’s net worth equal? a. $1.22 billion b. $920 million c. $620 million d. $20 million
§Suppose that the T-account for First National Bank is as follows: Assets Liabilities Reserves: 90.000-TL Deposits: 500.000-TL Loans: 410.000-TL § §If the Central Bank requires banks to hold 10% of deposits as reserves, how much in excess reserves does First National Bank now hold? MM=1/rr MM=1/(10/100) MM=10 40000*10=400000TL §Assume that all other banks hold only the required amount of reserves. If First National decides to reduce its reserves to only the required amount, by how much would the economy’s money supply increases?
Initially a bank has a required réserve ratio of 20 percent and no excess reserves. If $5,000 is deposited into the bank, theninitially. ceteris paribus, A . Required reserves will increase by $5,000.B .This bank can increase its loans by S5,000C .This bank can increase its loans by $4,000.D .Total reserves will increase by $4,000.
Only typed answer 1) Suppose a bank has $400,000 in deposits and a required reserve ratio of 25 percent. Then excess reserves are Multiple Choice a.) $10,000,000. b.) $300,000. c.) $400,000. d.) $8,000.
Assume that a bank has on its asset side reserves of 1000 and loans of 6000 and on its liability side deposits of 7000. Assume that the required reserve ratio is 10 percent. a. How much are its excess reserve.
You are the bank's liquidity manager. If the liquidation cost of highly non-liquid assets decreases, the risk of illiquidity [A] and the cost of illiquidity [B]. Therefore, it you can [C] the ESF buffer. As a result, your bank will provide [D] liquidity transformation for society. C and D are increase, the same decrease, the same increase, less decrease, more
a. Suppose a certain bank has $5M in capital, demand deposits totaling $40M, holds 15% reserves, and invests solely in high-risk loans. Sketch out this bank’s balance sheet.b. Now suppose that 10% of the loans completely default. What does this bank’s balance sheet look like? Hold demand deposits constant for this question.c. Finally, assume depositors, fearing insolvency, withdraw $15M from the bank. The bank can sell loans only at a 25% discount. Barring any inter-bank borrowing, does this bank remain solvent? Why or why not?
18. Refer to Table 13.2. The required reserve ratio is 20%. If the First Charter Bank ismeeting its reserve requirement and has no excess reserves, its loans equal:a) $710b) $460c) $550d) $760
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 BankBalance sheet as at December, 2019GHSm GHSmAssets: Liabilities & Equity:Reserves 1,000 Deposits 3,000Securities 2,000 Equity 7,000Loans & Advances 1,000Property, Plant and Equipment 6,000 .10,000 10,000 Prudent BankBalance sheet as at December, 2019GHSm GHSmAssets: Liabilities & Equity:Reserves 600 Deposits 2,500Securities 1,500 Equity 4,400Loans & Advances 800Property, Plant and Equipment 4,000 .6,900 6,900Assume a required reserve ratio of 10%.(a) What is the amount of excess reserves in this commercial banking system? (b)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? (c) Determine the stock of broad money supply assuming the non-bank public holds…