Question

ECON2313 hw4 2019b DADE. Layout References Mailings Review View X AA EEEE A. A. a ABCDE Date was cold лавьсаган Аавьссос Аавьсса. Аавbe d Aabbe Heading 7. Refer to the table below. The required reserve ratio is 25%. If the First Charter Bank is meeting its reserve requirement and has no excess reserves, its loans equal First Charter Bank Assets Llabilities Reserves SSD Deposits Loans 4400 Net Worth Total $1.200 Total A. $900. B. $1,000 C. $600. D. $1,800 8. The Bank of Green Oak has $2 million in deposits and $400,000 in reserves. If excess reserves are equal to $100,000, the required reserve ratio is A. 15% B. 10% C. 20% D. 5% 9. Suppose the required reserve ratio is 15%. A $30 million deposit will, at most, allow an expansion of the money supply to A $167 million. B. $200 million, C. $150 million D. $250 million 10. Considering a recession may happen next year. Commercial banks are more conservative in their lending policies and start holding some excess reserves. Compared to a situation in which banks are not holding excess reserves, the size of the money supply will be A. depending on fiscal policy B larger C. the same D. smaller sh (United States Focus 16

Answer 1

Date : . ) 3 (viz. (. ..) G As we know, the Asset and liability side must be equal to each other. So Assets of the first Charter Bank must be $ Koo. Reserves = 300 1200 X 25 100 (180o --300 doans = = $900. 1 So, the right answer is (A) = Note: According to the Chegy Policy, tutors are entitled to anson only first Quention among all duestions,