Homework Answers
a) Reserve deposit ratio is 25% so deposits are 100/25% = 400. Then money supply is currency + deposits = 200 + 400 = 600
b) Reserves = currency and money supply is 500. Reserves / deposits or currency / deposits = 25%. Now money supply = currency + deposits and so 500 = deposits * 25% + deposits. This gives deposits = 400 and currency held by public = reserves = 25% of 400 = 100.
c) deposits = money supply - currency = 1250 - 250 = 1000. Reserves = 100. Reserve deposit ratio = 100/1000 = 10%.
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Answer each of the following questions. (L03) a. Bank reserves are 100, the public holds 200...
Consider the following situations. a. Bank reserves are $100, the public holds $200 in currency, and...
Consider the following situations. a. Bank reserves are $100, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply Instructions: Enter your responses as integer values. Deposits: Money supply: b. The money supply is $500 and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Find currency held by the public and bank reserves. Instructions: Enter your responses as integer values. Currency held by the public:...
Consider the following situations a. Bank reserves are $3O0, the public holds $200 in currency, and the desired rese...
Consider the following situations a. Bank reserves are $3O0, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply Instructions: Enter your responses as whole numbers Deposits: $ Money supply. $ b. The maney supply is $550 and currency held by the public equals bank reserves The desired reserve-deposit ratio is 025 Find currency held by the public and bank reserves. Instructions: Enter your responses as whale numbers Currency held by...
I know the answer, but i don’t know how to calculation.
I know the answer, but i don’t know how to calculation.
1) If bank reserves are 200, the public holds 400 in currency, and the desired reserve/deposit ratio is 0.25, the deposits are and the money supply is_ 2) The money supply in Macroland is currently 2,500, bank reserves are 200, currency held by public is 500, and banks' desired reserve/deposit ratio is 0.10. Assuming the values of the currency held by the public and the desired reserve/deposit ratio do...
if money supply = 1000 and currency held by the public equals bank reserves; the required...
if money supply = 1000 and currency held by the public equals bank reserves; the required reserve ratio is 0,25. Find currency held by the public and bank reserves
In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the desired (and current) reserve/deposit ratio is 15 percent. If commercial banks borrow 100 econs in reserv...
In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the desired (and current) reserve/deposit ratio is 15 percent. If commercial banks borrow 100 econs in reserves from the Central Bank through discount window lending, then the money supply in Macroland will ______, assuming that the public does not wish to change the amount of currency it holds. Multiple Choice increase to 4,100 econs decrease to 1,900 econs increase to 3,133 econs increase to...
The central bank of the fictitious country "Alpha" raises bank reserves by $200. What effect will...
The central bank of the fictitious country "Alpha" raises bank reserves by $200. What effect will the increase in bank reserves have on the money supply in each of the following situations: a. If the banking system is a 100% reserve banking system, the money supply will increase by $) b. The banking system is a fractional reserve banking system with a desired reserve deposit ratio or 0.25, the money supply will increase by $
Complete the sentences. The ratio of reserves to deposits that a bank plans to hold is...
Complete the sentences. The ratio of reserves to deposits that a bank plans to hold is its If a bank has $10 million in actual reserves and 58 million in desired reserves, then it has O A. planned deposit ratio, a shortage of currency O B. desired deposit ratioa shortage of deposits OC. desired reserve ratio, excess reserves O D. planned reserve ratio; a currency drain
6. If reserves in the banking system increase by $100, then checkable deposits will increase by...
6. If reserves in the banking system increase by $100, then checkable deposits will increase by $400 in the simple model of deposit creation when the required reserve ratio is eserve retioKeserves De posi+s 7. If the required reserve ratio is one-third, curreney in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, then the MI money multiplier is 8. If the required reserve ratio is 10 percent, currency in circulation is $400 billion,...
Scenario: Holding Cash Suppose that the public holds 50% of the money supply in currency and...
Scenario: Holding Cash Suppose that the public holds 50% of the money supply in currency and the reserve ratio is 20 percent. Banks hold no excess reserves. A customer deposits $6000 in her chequeable deposit. 5. (Scenario: Holding Cash) The money multiplier is: a equal to 2 b.greater than 5. c 0 equal to 5. d loss than 5
The required reserve ratio is the A. total amount of reserves the bank holds in its...
The required reserve ratio is the A. total amount of reserves the bank holds in its vaults. B. total amount of reserves the bank holds at the Fed. OC. amount of reserves banks are required by the Fed to be held as a percentage of the bank's loans. O D. amount of reserves banks are required by the Fed to be held as a percentage of the bank's deposits. O E. amount of excess reserves the bank holds just in...
Consider the following situations. a. Bank reserves are $100, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply Instructions: Enter your responses as integer values. Deposits: Money supply: b. The money supply is $500 and currency held by the public equals bank reserves. The desired reserve-deposit ratio is 0.25. Find currency held by the public and bank reserves. Instructions: Enter your responses as integer values. Currency held by the public:...
Consider the following situations a. Bank reserves are $3O0, the public holds $200 in currency, and the desired reserve-deposit ratio is 0.25. Find deposits and the money supply Instructions: Enter your responses as whole numbers Deposits: $ Money supply. $ b. The maney supply is $550 and currency held by the public equals bank reserves The desired reserve-deposit ratio is 025 Find currency held by the public and bank reserves. Instructions: Enter your responses as whale numbers Currency held by...
I know the answer, but i don’t know how to calculation.
1) If bank reserves are 200, the public holds 400 in currency, and the desired reserve/deposit ratio is 0.25, the deposits are and the money supply is_ 2) The money supply in Macroland is currently 2,500, bank reserves are 200, currency held by public is 500, and banks' desired reserve/deposit ratio is 0.10. Assuming the values of the currency held by the public and the desired reserve/deposit ratio do...
The central bank of the fictitious country "Alpha" raises bank reserves by $200. What effect will the increase in bank reserves have on the money supply in each of the following situations: a. If the banking system is a 100% reserve banking system, the money supply will increase by $) b. The banking system is a fractional reserve banking system with a desired reserve deposit ratio or 0.25, the money supply will increase by $
Complete the sentences. The ratio of reserves to deposits that a bank plans to hold is its If a bank has $10 million in actual reserves and 58 million in desired reserves, then it has O A. planned deposit ratio, a shortage of currency O B. desired deposit ratioa shortage of deposits OC. desired reserve ratio, excess reserves O D. planned reserve ratio; a currency drain
6. If reserves in the banking system increase by $100, then checkable deposits will increase by $400 in the simple model of deposit creation when the required reserve ratio is eserve retioKeserves De posi+s 7. If the required reserve ratio is one-third, curreney in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, then the MI money multiplier is 8. If the required reserve ratio is 10 percent, currency in circulation is $400 billion,...
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The required reserve ratio is the A. total amount of reserves the bank holds in its vaults. B. total amount of reserves the bank holds at the Fed. OC. amount of reserves banks are required by the Fed to be held as a percentage of the bank's loans. O D. amount of reserves banks are required by the Fed to be held as a percentage of the bank's deposits. O E. amount of excess reserves the bank holds just in...
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