Ans) the correct option is b) $ 210
Required reserves= required reserve ratio * deposits
= 0.07 * 3,000 = 210
Suppose that the reserve ratio is 7 percent and that a bank has $3000 in deposits....
1. Suppose a bank has a 5 percent reserve ratio, $10,000 in deposits, and it loans out all it can, given the reserve ratio. Which of the following is correct_ _? A. It has $50 in reserves and S9950 in loans. B. It has $500 in reserves and $9500 in loans. C. It has $555 in reserves and S9445 in loans. D. It has S559 in reserves and S9445 in loans. 10. Considering a recession may happen next year. Commercial...
If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is A) $30,000. B) $25,000. C) $20,000. D) $10,000.
Suppose the required reserve ratio is 0.20. Total bank deposits are $200 million and the bank holds $50 million in reserves. How much more money could the bank create if it does not hold excess reserves? A. $5 million B. $25 million C. $30 million D. $50 million
just question e please 10. Suppose the reserve ratio is 25%. Bank One has $12,000 deposits and $3,000 bank capital (owners' equity). Bank One has $3,000 securities. What are the reserves and loans? a. Draw the bank balance sheet with reserves, deposits, loans, securities and capital. b. What is the total amount of reserves? 12,000X. 25: 13,000 c. What is the total amount of loans? 15.000- 3,000-3000 54.000 d. What is the leverage ratio? 15,000/3,000 - 5 e. If $500...
10. Suppose the reserve ratio is 25%. Bank One has $12,000 deposits and $3,000 bank capital (owners' equity). Bank One has $3,000 securities. What are the reserves and loans? a. Draw the bank balance sheet with reserves, deposits, loans, securities and capital. b. What is the total amount of reserves? c. What is the total amount of loans? d. What is the leverage ratio? e. If $500 are deposited, how much money would be created with a reserve ratio of...
ommercial Bank has $5,000 in excess reserves, $90,000 in checkable deposit and the reserve ratio is 30 percent. The bank must have: A. $35,000 in reserves. B. $32,000 in reserves. C. $10,000 in reserves. D. 15,000 in reserves 23. Suppose a commercial bank has checkable deposits of $100,000 and the legal reserve ratio is A. are $17,000. 10 percent. If this bank has $ 17,000 in reserves, then its excess reserves: B. are $10,000. C. are $7,000. D. are $1,700...
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve raises the required reserve ratio to 12 percent, then the bank will now have excess reserves of A) $12,000. B) $0. C) -$2,000. D) -$12,000.
A bank has $7,000 in deposits and the required reserve ratio is 10 percent. Based on this information Instructions: Enter your responses as a whole number. a. Enter the appropriate values in the T-account. T-Account Liabilities Deposits Assets Reserves Required Excess Total assets Total liabilities b. Calculate the potential total deposit creation of the bank.
A bank's reserve ratio is 8 percent and the bank has $1,000 in deposits. Its reserves amount to Group of answer choices $80 $920 $8 $92
Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. The bank sells $20,000 in securities to the Federal Reserve Bank in its district, receiving a $20,000 increase in reserves in return. Instructions: Enter your answer as a whole number. What level of excess reserves does the bank now have? $