If the required reserve ratio is 8% and President Obama deposits 10,000,000 million dollars, by how...
Homework Answers
Answer
Money multiplier =1/reserve ratio
=1/0.1
=10
the money supply expand=multiplier * deposits
=10*10,000,000
=100,000,000
The money supply increases by 100,000,000 million
Add Answer to:
If
the required reserve ratio is 8% and President Obama deposits
10,000,000 million dollars, by how...
Suppose the required reserve ratio is 0.20. Total bank deposits are $200 million and the bank...
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
How does the reserve ratio change if the Fed increases the required reserve ratio? How does...
How does the reserve ratio change if the Fed increases the required reserve ratio? How does the currency-deposit ratio change if people decide to keep more of their money in cash rather than depositing it? If people decide to hold zero currency (, meaning the currency- deposit ratio goes to zero), what is the relationship between the money supply and the monetary base (what is the money multiplier)? If people decide to hold all of their money as currency and...
The Fed conducts an open market sale of bonds. $50 million and the reserve ratio is...
The Fed conducts an open market sale of bonds. $50 million and the reserve ratio is 20% and after the sale. a. Does the money supply INCREASE or DECREASE? (circle) b. How much does the money supply change? 9. Suppose a country has a 100% reserve requirement for all banks. a. How much does the money supply change from a deposit of $100 by a housen b. What is the role of banks in moving funds from depositors to borrowers?...
8. The Fed conducts an open market sale of bonds, $50 million, and the reserve ratio...
8. The Fed conducts an open market sale of bonds, $50 million, and the reserve ratio is 20% before and after the sale a. Does the money supply INCREASE or DECREASE? (circle) b. How much does the money supply change?_
Assets Liabilities Loans Deposits $65 million Required Reserves Excess Reserves $2 million Treasury Securities $5 million...
Assets Liabilities Loans Deposits $65 million Required Reserves Excess Reserves $2 million Treasury Securities $5 million 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. What is the value of the money multiplier? [Money Multiplier =...
3. If the required reserve ratio is 20% a) How much of a new $10,000 deposit...
3. If the required reserve ratio is 20% a) How much of a new $10,000 deposit can a bank lend? b) What is the potential impact on the money supply? c) Now suppose that banks actually hold 25% in reserves and individuals hold 15% of deposits in cash. What is the actual impact on the money supply?
answer these 4. will rate after Assume that the required reserve ratio is 20%. If the...
answer these 4. will rate after
Assume that the required reserve ratio is 20%. If the Federal Reserve buys $10 million worth of government bonds from the public, the maximum change in the money supply will be: more than 10 million. $2 million. O less than 10 million. o less than 2 million. Assume the reserve ratio is 25 percent and there are $40,000 in new deposits in the banking system. As a result, the money-creating potential of the commercial...
Suppose the monetary base is $500 million, the required reserve ratio is 12%, and the currency-deposit...
Suppose the monetary base is $500 million, the required reserve ratio is 12%, and the currency-deposit ratio is 30%. What would the excess reserve ratio need to be to produce $800 million in the money supply. Holding everything else constant, what effect would an increase in the excess reserve ratio have on the money supply?
Assume the money supply is $850 billion, total deposits are $500 billion and the required reserve-deposit...
Assume the money supply is $850 billion, total deposits are $500 billion and the required reserve-deposit ratio is 10%, if the Central Bank purchases $60 million worth of Treasury bills, what is the greatest amount by which total money supply could change? Do you expect that money supply would actually change by that much? Find the maximum value of deposit multiplier for this economy. Explain, why this value is the maximum value.
Assume the money supply is $850 billion, total deposits are $500 billion and the required reserve-deposit...
Assume the money supply is $850 billion, total deposits are $500 billion and the required reserve-deposit ratio is 10%, if the Central Bank purchases $60 million worth of Treasury bills, what is the greatest amount by which total money supply could change? Do you expect that money supply would actually change by that much? Find the maximum value of deposit multiplier for this economy. Explain, why this value is the maximum value.
How does the reserve ratio change if the Fed increases the required reserve ratio? How does the currency-deposit ratio change if people decide to keep more of their money in cash rather than depositing it? If people decide to hold zero currency (, meaning the currency- deposit ratio goes to zero), what is the relationship between the money supply and the monetary base (what is the money multiplier)? If people decide to hold all of their money as currency and...
The Fed conducts an open market sale of bonds. $50 million and the reserve ratio is 20% and after the sale. a. Does the money supply INCREASE or DECREASE? (circle) b. How much does the money supply change? 9. Suppose a country has a 100% reserve requirement for all banks. a. How much does the money supply change from a deposit of $100 by a housen b. What is the role of banks in moving funds from depositors to borrowers?...
8. The Fed conducts an open market sale of bonds, $50 million, and the reserve ratio is 20% before and after the sale a. Does the money supply INCREASE or DECREASE? (circle) b. How much does the money supply change?_
3. If the required reserve ratio is 20% a) How much of a new $10,000 deposit can a bank lend? b) What is the potential impact on the money supply? c) Now suppose that banks actually hold 25% in reserves and individuals hold 15% of deposits in cash. What is the actual impact on the money supply?
answer these 4. will rate after
Assume that the required reserve ratio is 20%. If the Federal Reserve buys $10 million worth of government bonds from the public, the maximum change in the money supply will be: more than 10 million. $2 million. O less than 10 million. o less than 2 million. Assume the reserve ratio is 25 percent and there are $40,000 in new deposits in the banking system. As a result, the money-creating potential of the commercial...
Suppose the monetary base is $500 million, the required reserve ratio is 12%, and the currency-deposit ratio is 30%. What would the excess reserve ratio need to be to produce $800 million in the money supply. Holding everything else constant, what effect would an increase in the excess reserve ratio have on the money supply?
Assume the money supply is $850 billion, total deposits are $500 billion and the required reserve-deposit ratio is 10%, if the Central Bank purchases $60 million worth of Treasury bills, what is the greatest amount by which total money supply could change? Do you expect that money supply would actually change by that much? Find the maximum value of deposit multiplier for this economy. Explain, why this value is the maximum value.
Assume the money supply is $850 billion, total deposits are $500 billion and the required reserve-deposit ratio is 10%, if the Central Bank purchases $60 million worth of Treasury bills, what is the greatest amount by which total money supply could change? Do you expect that money supply would actually change by that much? Find the maximum value of deposit multiplier for this economy. Explain, why this value is the maximum value.
Most questions answered within 3 hours.
-
Morganton Company
makes one product and it provided the following information to help
prepare the master...
asked 13 minutes ago -
2Al + 3Cl2 --> 2AlCl3
If one mole Al is reacted w two moles Cl2, how...
asked 50 minutes ago -
1. You will see some trends in the movement of each currency vs.
the US Dollar....
asked 54 minutes ago -
9. (9 pts) An investor with a stock portfolio worth several
hundred thousand dollars sued his...
asked 1 hour ago -
Which statement is true?
a. Unless directed otherwise, the computer automatically
executes C. statements one before...
asked 1 hour ago -
When a new company is considering Speed to Market for a product
launch, which would provide...
asked 2 hours ago -
bacteria and their metabolites could either promote or protect from
cancer. Explain one of these cases...
asked 2 hours ago -
Use the sample data and confidence level given below to complete
parts (a) through (d).
A...
asked 3 hours ago -
During laser vision correction, a brief burst of 193 nm
ultraviolet light is projected onto the...
asked 3 hours ago -
1 ) How well does the initial speed, v0,calculated from Equation
4 agree with the value...
asked 3 hours ago -
1. What is the p-value for a right tail test for a single
proportion with a...
asked 4 hours ago -
A technician compares repair costs for two types of microwave
ovens (type I and type II)....
asked 3 hours ago