1. If the reserve ratio is 10% then calculate any excess reserve. 2. If the bank decides to loan out the excess reserve then how much money supply that excess reserve can create?
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- You take $100 you had kept under your mattressand deposit it in your bank account. If this $100stays in the banking system as reserves and if bankshold reserves equal to 10 percent of deposits, byhow much does the total amount of deposits in thebanking system increase? By how much does themoney supply increase?Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 32Deposits 205Loans 150 Securities 53Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)Beleaguered State Bank (BSB) holds $250 million indeposits and maintains a reserve ratio of 10 percent.a. Show a T-account for BSB.b. Now suppose that BSB’s largest depositorwithdraws $10 million in cash from her accountand that BSB decides to restore its reserve ratio byreducing the amount of loans outstanding. Showits new T-account
- Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 44Deposits 255Loans 155 Securities 51Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 6%(Give answers to 2 decimal places as needed)Only typed answer and please don't use chatgpt Assume the commercial banking system has checkable deposits of $20 billion and excess reserves of $2 billion at a time when the reserve ratio is 25 percent. If the reserve ratio is lowered to 20 percent, we can conclude that the: Answers: bank now has excess reserves of $3.2 billion. bank now has neither an excess nor a deficiency of reserves. maximum money-creating potential of the banking system has been increased by $7 billion. Board of Governors has decided that the economy is experiencing a high rate of inflation.in the economy of Nocoin the banks have deposits of $400 bilion Their reserves are $80 billion, two thirds of which is in deposits with the central bank Households and frms hold $20 billion in banknotes (dollar bills). There are no coins! Calculate the banks' desired reserve ratio and the currency drain ratio (as percentages) The banks' desired reserve ratio ispercent The currency drain ratio is percent
- if people hold all money as demand deposits and banks maintain a reserve raitio of 12.5 percent what's the quantity of moneyou just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 1212%, how much will your deposit increase the total value of checkable bank deposits? $ If the reserve requirement is 44%, how much will your deposit increase the total value of checkable deposits? $ Increasing the reserve requirement the money supply.Sea shell have been used as money is West Africa. This is an example of Seçtiğiniz cevabın işaretlendiğini görene kadar bekleyiniz. Soruyu boş bırakmak isterseniz işaretlediğiniz seçeneğe tekrar tiklayımız 4,00 Puan fiat money. B legal money. token money. commodity money. D Soru Bog Brat Which of the following is not a form of commodity money? Seçtiğiniz cevabın işaretlendiğini görene kadar bekleyiniz. Soruyu boş bırakmak isterseniz işaretlediğiniz seçeneje tekrar tiklaynız 4,00 Puan A checks B cigarettes precious stones all of the above Bu Soryu Bog arak
- suppose the reserve requirement is 10 percent and the balance sheet of the peoples national bank looks like the accompanying example.ASSETSvault cash - $20,000deposits at fed - 30,000securities - 45,000loans - 120,000LIABILITIESchecking deposits - $200,000net worth - 15,000answer the following:A. what are the required reserves of people national bank? does the bank have any excess reserves?B. what is the maximum loan that the bank could extend?C. indicate how the banks balance sheet would be altered if it extended this loan.D. suppose that the required reserves were 20 percent. if this were the case, would the bank be in a position to extend any additional loans? explainTable 10-2 Last Bank of Cedar Bend Assets: Reserves Loans Liabilities: $25 000 Deposits $180 000 S155 000 efer to the Table 10-2. If the reserve requirement is 10 percent and then someone deposits $50 000 into the bank, what is the bank's reserve osition? alect one: cross a. It will have $52 000 in excess reserves. cros b. It will need to raise reserves by $5000. cros c. It will have $57 000 in excess reserves. d. It will have excess reserves of $2000.Assume that a bank has on its asset side reserves of 1000 and loans of 6000 and on itsliability side deposits of 7000. Assume that the required reserve ratio is 10 percent.a. Calculate the excess reserve ?
