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Phil Frugal has been saving his pennies since he was 5 years old. He is now 45 and deposits his savings in a bank. His pennies total $5,000. Using this information and your knowledge of the banking system, select the best match for each item. Then calculate the values of reserves, required reserves, and excess reserves. Assume a required reserve ratio of 10%. a. The amount of interest the bank must charge on a loan required reserves excess reserves reserves none of these b. The amount of funds banks must, by law, hold in rescrve required reserves excess reserves reserves none of these c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed required reserves excess reserves reserves none of these

Phil Frugal has been saving his pennies since he was 5 years old. He is now 45 and deposits his savings in a bank. His pennies total $5,000. Using this information and your knowledge of the banking system, select the best match for each item. Then calculate the values of reserves, required reserves, and excess reserves. Assume a required reserve ratio of 10%. a. The amount of interest the bank must charge on a loan required reserves excess reserves reserves none of these b. The amount of funds banks must, by law, hold in rescrve required reserves excess reserves reserves none of these c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed required reserves excess reserves reserves none of these

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
Section: Chapter Questions
Problem 4PA
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Phil Frugal has been saving his pennies since he was 5 years old. He is now 45 and deposits his savings in a bank. His pennies total $5,000. Using this information and your knowledge of the banking system, select the best match for each item. Then calculate the values of reserves, required reserves, and excess reserves. Assume a required reserve ratio of 10%. a. The amount of interest the bank must charge on a loan required reserves excess reserves none of these reserves b. The amount of funds banks must, by law, hold in rescrve required reserves excess reserves reserves none of these c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed required reserves excess reserves reserves none of these d. The amount of reserves the bank owes to other banks required reserves excess reserves reserves none of these
Transcribed Image Text:Phil Frugal has been saving his pennies since he was 5 years old. He is now 45 and deposits his savings in a bank. His pennies total $5,000. Using this information and your knowledge of the banking system, select the best match for each item. Then calculate the values of reserves, required reserves, and excess reserves. Assume a required reserve ratio of 10%. a. The amount of interest the bank must charge on a loan required reserves excess reserves none of these reserves b. The amount of funds banks must, by law, hold in rescrve required reserves excess reserves reserves none of these c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed required reserves excess reserves reserves none of these d. The amount of reserves the bank owes to other banks required reserves excess reserves reserves none of these
e. The maximum amount of rescrves available for loans required reserves excess reserves none of these reserves required rescrves excess rescrves none of these reserves Enter the values of reserves, excess reserves, and required reserves. Reserves: $ Excess reserves: $ Required reserves: $
Transcribed Image Text:e. The maximum amount of rescrves available for loans required reserves excess reserves none of these reserves required rescrves excess rescrves none of these reserves Enter the values of reserves, excess reserves, and required reserves. Reserves: $ Excess reserves: $ Required reserves: $
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