Homework Answers
Due to presence of HOMEWORKLIB POLICY, I am answering 2 questions.
2.
Ans: A
Explanation: Required reserves = 0.2 X 80000 = 16000
Actual reserves = required reserves + excess reserves = 16000 + 10000 = 26000.
4.
Ans: A.
Explanation: Multiplier = 1 / 0.15 = 6.67.
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liabilities of a bank:
a. The Fed sets a reserve requirement of 3% on deposits between
$16 million and $122 million. If the bank holds $5 million dollars
in US Treasury Securities and $2 million in excess reserves,
compute the bank’s required reserve level and the quantity of loans
this bank is able to make to the public. b. What is the value of
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We are given the following information about the assets and
liabilities of a bank:
a. The Fed sets a reserve requirement of 3% on deposits between
$16 million and $122 million. If the bank holds $5 million dollars
in US Treasury Securities and $2 million in excess reserves,
compute the bank’s required reserve level and the quantity of loans
this bank is able to make to the public. b. What is the value of
the money multiplier? [Money Multiplier =...
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the solution for c. isnt $13,340 either.
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need all 5 answeres
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