Answered: When banks have deposits in checking…

When banks have deposits in checking accounts with the Fed, these deposits for the bank are __________________ of the commercial bank a. Liabilities b. Assets c. Net Worth d. Equity

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 30P: A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It...

See similar textbooks

Related questions

Q: Money Rates Term: Prime Rate % Prime rates[ U.S. Effective Date: 52-WEEK Latest Wk ago High Low U.S.…

A: The term federal funds rate refers to the rate of interest that the bank charges to other banks for…

Q: b. Illustrate all effects that causes a discount loan of $100 made by FED to the First National…

A: Federal Reserve The Federal Reserve is the Central bank of the United States of America, which is…

Q: What is Mortgage Crisis? What are the causes of mortgage crisis? What is the impact of mortgage…

A: The financial collapse of 2007-08, also known as the subprime mortgage crisis, is a sharp decline in…

Q: 1 attempt emaining Manch the following scenarios to the exumple of bank regularion that they…

A: The Central Bank performs numerous functions as it is the highest monetary institution of a country.…

Q: Which is the riskier action for a bank? A. Making foreign exchange trades on behalf of customers…

A: We have been asked that what is more riskier for a bank between the two options : Making foreign…

Q: QUESTION 8 08. The Dodd-Frank Act (a) Increased transparency in financial institutions and markots.…

A: The answer is - (e) All of the above

Q: When the value of a bank's assets is less than its liabilities, the bank is said to be A. insolvent.…

A: 1). The correct option is A that is insolvent. A bank's excess liability over their assets so they…

Q: Explain what the effects to the FINANCIAL MARKET happen more and more people keep increasing default…

A: The majority of the people cannot repay their loans to financial institutions. There are cases of…

Q: a. Suppose a certain bank has $5M in capital, demand deposits totaling $40M, holds 15% reserves, and…

A: A certain bank has $5M in capital, demand deposits of $40M, holds 15% reserves (that is 15 %…

Q: 1. Financial institutions in the U.S. economy Suppose Charles would like to use $1,000 of his…

A: One way of making a financial investment is to purchase stock or bonds from a private company.…

Q: a. In the financial crisis of 2008, the impact of the housing market crash could affect the balance…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: 1. Using a supply and demand diagram for each of the following scenarios, show how the market for…

A: a) Everyone starts investing in silver and gold will increase the money in the economy as people…

Q: . A banks assets can be described as the a. Value of the loans and the estimates about the risk that…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Define the following concepts: a) ROAD b) ROE= Based on a) and b) explain how reducing the amount of…

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: Banks Ordered to Hold More Capital U.K. banks must hold more capital as their holdings of consumer…

A: If a bank wants to expand its base of capital, it could do so through retaining of profits or…

Q: ce sheet Assets Liabilities Required reserves Excess reserves Loans $11 $31 $80 Checkable deposits…

A: *Answer: bank is considered as the financial institution that have licenses to receive deposits and…

Q: 1. Financial institutions in the U.S. economy Suppose Yakov would like to use $6,000 of his savings…

A: One way of making a financial investment is to purchase stock or bonds from a private company.…

Q: ) (i) On April 7th, 2020, Fitch Ratings Inc. downgrades Australia's four biggest banks credit…

A: I) When the fitch rating has downgraded the 4 biggest bank of the Australian economy it will mean…

Q: 2. The liquidity of an asset is A. the ease with which you can sell the asset. B. the speed at…

A: The economies around the globe tend to face a limit to the amount of resources which they have. This…

Q: Please do it in 10 minutes will upvote

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: True or False: If a currency’s LIBOR rate falls, the money market interest rates denominated in that…

A: The London Interbank Offered Rate, or LIBOR, is the benchmark interest. It is used as an index rate…

Q: 14 Monetary Base and Money supply are described as A) Monetary Hase is currency plus deposits and…

A: Money refers to a commodity that is generally accepted as a medium of exchange for goods and…

Q: 1. What is the primary social function of the financial system? a. To direct financial capital to…

A: Q1 One of the essential social functions and objectives of the financial system in an economy is to…

Q: Question 2(a) Explain on the impact of a drop in the discount rate on the supply of money in the…

A: (a) The discount rate is the rate of interest that is needed to be paid by the bank who had borrowed…

Q: 10:26 451 docs.google.com/forms C) You buy Central Bank Treasury bill from the Malaysia Treasury. D)…

A: Securities:- A security can be explained as a financial instrument that may be traded. The phrase…

Q: The Federal Reserve will lose money as a lender of last resort if Select one: O a. financial…

A: Federal Reserve is the central bank of United States of America and thus, is responsible for…

Q: 8. The Discount Rate The refinancing rate is the interest rate a central bank like the Bank of…

A: Introduction Its first option is true, refinancing rate is primary barometer. Its second option is…

Q: Assets 1. A share in a publicly traded company 2. The funds in a savings account 3. A $10 bill 4.…

A: Liquidity means how easily the asset can be converted into asset. The longer the time asset takes to…

Q: Depositors of money in a bank are O a) suppliers of funds. O b) borrowers of funds. O c) customers…

A: Banks are defined as the financial institution which accepts deposits from public and uses it to…

Q: .......... can be stopped with .......... policy changes that remove the need for ..........…

A: Fiscal policy is used by government using the tools like government expenditure and taxes to…

Q: 23. If the interest rate on a loan a business is looking to take is lower than the expected return…

A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…

Q: Question 3) Using the start year (see Column Z) and end year (see Column AA) plot the M1 money…

A: The following graph shows the money supply M1 and the monetary base for the

Q: Discuss the following statements: “(1) individual financial institutions will generally have…

A: Financial institutions are central banks, all the retail banks and insurance agencies. These do have…

Q: Rio Tinto pays a fee to a bank for its assistance during an issue of securities. Rio Tinto does NOT…

A: Bank Deposits:- Bank deposits can be defined as the money, deposited in banking institutions for…

Q: 11. Which policy tool involves the federal reserve setting a short-term interest rate to lend…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Question

When banks have deposits in checking accounts with the Fed, these deposits for the bank are __________________ of the commercial bank

	a.	Liabilities
	b.	Assets
	c.	Net Worth
	d.	Equity

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It has made loans of 500. Set up a T-account balance sheet for the bank, with assets and liabilities, and calculate the banks net worth.
How is a central bank different from a typical commercial bank?
Suppose the Fed conducts an open market purchase by buying 10 million in Treasury bonds from Acme Bank. Sketch out the balance sheet changes that will occur as Acme converts the bond sale proceeds to new loans. The initial Acme bank balance sheet contains the following information: Assets - reserves 30, bonds 50, and loans 50; Liabilities - deposits 300 and equity 30.
In government programs of bank supervision, what is being supervised?
Suppose the Fed conducts an open market sale by selling $10 million in Treasury bonds to Acme Bank. Sketch out the balance sheet changes that will occur as Acme restores its required reserves (10% of deposits) by reducing its loans. The initial balance sheet for Acme Bank contains the following information: Assets - reserves 30, bonds 50, and loans 250; Liabilities - deposits 300 and equity 30.
In a program of deposit insurance as it is operated in the United States, what is being insured and who pays the insurance premiums?
Bank runs are often described as self-fulfilling prophecies. Why is this phrase appropriate to bank runs?
The term moral hazard describes increases in risky behavior resulting from efforts to make that behavior safer. How does the concept of moral hazard apply to deposit insurance and other bank regulations?
What is a bank run?