rr = required reserve ratio = 0.15 C = currency in circulation = R200 billion D = checkable deposits = R600 billion ER = excess reserves = R0.8 billion calculate the excess reserve ratio and the money multipli
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- rr =
required reserve ratio = 0.15 - C = currency in circulation = R200 billion
- D = checkable deposits = R600 billion
- ER =
excess reserves = R0.8 billion - calculate the excess reserve ratio and the money multiplier
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- Initial deposit is $10,000 Required Reserve Ratio is 20% Calculate: $ Multiplier Required Reserves Excess ReservesMoney Multiplier: = D rr = required reserve ratio = 0.10 C = currency in circulation = $ 400 billion = checkable deposits = $800 billion 1 + c ER= excess reserve rr + e + c - $0.80 billion M = money supply (M1) = C + D = $1,200 c = currency ratio = C/D = $400/$800= 0.5 e excess reserve ratio = ER/D = $.80 b / $800 b Using the formula for the money multiplier above, derive is the Money Multiplier?Initial deposit ($100) The Money Multiplier Process Loan Loan University Bank Excess reserves: $25 Required reserves: $75 Deposit Bank #2 Deposit Excess reserves: $6.25 Required reserves: $18.75 How large a loan can Bank #2 in the figure above make? Instructions: Round your response to two decimal places. Bank #3 Loan Deposit Excess reserves: $1.56 Required reserves: $4.69 Bank #4 etc. Excess reserves: $0.39 Required reserves: $1.17
- If the required reserve ratio is 10 percent, currency in circulation is $600 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is billion. $1,480.80 $1,400 $680.8 $1,300Initial deposit is $10,000 Required Reserve Ratio is 10% Calculate: $ Multiplier Required Reserves Excess Reserves Potential $ CreatedWhen a person makes a deposit $700 to a BOA in St. Louis. Currently the required reserves rate is 8%. Then how much money can be created through the banking system? Write only the integer number without $ sign and commas. Answer $__________.00
- it required reserve ratio (RRR) is 25%, the money multiplier isInitial deposit is $10,000 Required Reserve Ratio is 20% Calculate: $ Multiplier Required Reserves Excess Reserves Potential $ Created Initial deposit is $10,000 Required Reserve Ratio is lowered to 10% Calculate: $ Multiplier Required Reserves Excess Reserves Potential $ CreatedA bank has the following deposits and assets: Checkable deposits held by individuals and businesses, $380 Savings deposits held by individuals and businesses, $1,280 Small time deposits, $575 Loans to businesses, $1,809 Outstanding credit card balances, $300 Government securities, $125 Currency in the bank's vault, $1 Reserve account at the Fed, $8 Calculate the bank's total deposits, deposits that are part of M1, and deposits that are part of M2. The bank's total deposits are $ Deposits that are part of M1 are $ Deposits that are part of M2 are $
- Given the following information, what are the values of M1 and M2? Small time deposits $750 billion Demand deposits and other $420 billion checkable deposits Savings deposits $700 billion Money market mutual $1,550 billion funds Travelers' checks $25 billion Large time deposits $2,200 billion Currency $300 billion Miscellaneous categories in $60 billion M2 Suppose large time deposits of $1,200 billion mature and people decide to deposit $180 billion of this amount in checking accounts, $800 billion in savings accounts, and the remaining amount in money market mutual funds. How do these actions affect M1 and M2?Required reserves in Bank two should be 10% of $80,000 demand deposits which equals 8,000. Correct?Mr. Bill Smith lives in Dayton Ohio and always deposits money into a checking account in a bank nearby. Please calculate the money creation in the U.S. banking system with required reserve ratio at 0.25 in each of the following cases: (a) Bill’s parents wired him $100,000 from Germany. (b) Bill won $100,000 cash from a casino in another state. (c) Bill found $100,000 worth of collectable coins underground at his house. (d) Bill got a $100,000 check which is issued in a U.S. bank from his aunt as gift.
