Homework Answers
D.Excess reserves.
The difference between a bank's reserves and its required reserves is excess reserves.
net interest income is the difference between interest earned by bank on its assets and the interest expended on its liabilities.
Vault cash is the money banks keep at the business points to meet day to day needs.
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13) The difference between a bank's reserves and its required reserves is A) profits B) vault...
a- Explain the distinction between a bank's actual reserves and its required reserves. b- Explain the...
a- Explain the distinction between a bank's actual reserves and its required reserves. b- Explain the multiple expansion of loans and money by the entire banking system. c-Explain the money multiplier, explain how to calculate it, and demonstrate its relevance.
U 110WUJ VINUL ILUUUUUUUUUUU UU35 EUus (d) M1-Near Monies 6. The difference between a bank's actual...
U 110WUJ VINUL ILUUUUUUUUUUU UU35 EUus (d) M1-Near Monies 6. The difference between a bank's actual reserves and its requirea reserves is it (a) excess reserves (b) required reserve ratio (©) profit margin (d) net worth 7. Refer to Figure 12.3. At an interest rate of 8%, there is (a) an excess supply of money of 250 (b) an excess supply of money of 150 (©) an excess demand for money of 200 (d) an excess demand for money of...
A. Required reserves are a set percentage of total reserves that must be held in cash...
A. Required reserves are a set percentage of total reserves that must be held in cash in a bank's vault or in the bank’s reserve account at the Fed. True False B. To a bank, a checkable deposit is classified as an asset. a liability. vault cash. excess reserves. bank capita C. Money is an invention of government. True False D. Which of the following statements is true? A savings deposit is not counted in the most basic, or narrow,...
9. Why are US and Australian government securities referred to as a bank's secondary reserves? A....
9. Why are US and Australian government securities referred to as a bank's secondary reserves? A. They are the same thing as vault cash. C. Their current market value may count toward meeting a bank's legal reserve requirements Banks are legally required to hold a certain minimum amount of these securities. D.
A commercial bank's reserves are.... A. bonds issued by the U.S. government that are very safe....
A commercial bank's reserves are.... A. bonds issued by the U.S. government that are very safe. B. the provision of funds to businesses and individuals. C. savings and time deposits. D. currency in its vault plus the balance on its reserve account at a Federal Reserve Bank. E. its loans.
A bank's checkable deposits are $960, its loans are $857 and the bank has reserves of...
A bank's checkable deposits are $960, its loans are $857 and the bank has reserves of $103. If the bank faces a required reserve ratio of 9%, then what are the bank's current excess reserves?
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...
When can a bank make loans? a. when it has the minimum amount of required reserves...
When can a bank make loans? a. when it has the minimum amount of required reserves b. only when it is confident that it can meet all the cash needs of depositors c. only when it has deposited all cash at the Federal Reserve d. when it has reserves greater than the amount of required reserves e. There is not enough information to solve this problem. 37. In a fractional reserve banking system, banks a. are able to create money...
9 In the U.S econormy the money supply is cot A) U.S Treasury. B) Federal Reserve...
9 In the U.S econormy the money supply is cot A) U.S Treasury. B) Federal Reserve System D) Senate Committee on Banking and Finance. 10. Ceteris paribus, if the Fed raised the required reserve ratio A) Banks could increase their lending B) The Federal funds interest rate would rise. The size of the monetary multiplier would decrease. D) The size of the monetary multiplier would increase. 11. Money is created when A) Loans are made. Checks written on one bank...
The balance sheet for the newly formed Last National Bank is shown below. The reserves listed on the balance sheet are reserves on deposit at the Federal Reserve. The cash is vault cash held at the bank.
The balance sheet for the newly formed Last National Bank is shown below. The reserves listed on the balance sheet are reserves on deposit at the Federal Reserve. The cash is vault cash held at the bank.Last National Bank Balance Sheet 1 Cash - $15,000Reserves - $102,000Property - $309,000Checkable deposits - $116,000Shock Shares - $310,000Instructions: Enter your answers as whole numbers. a. Suppose a depositor at the bank writes a check for $26,500 to a contractor to pay for some remodeling work done on her...
U 110WUJ VINUL ILUUUUUUUUUUU UU35 EUus (d) M1-Near Monies 6. The difference between a bank's actual reserves and its requirea reserves is it (a) excess reserves (b) required reserve ratio (©) profit margin (d) net worth 7. Refer to Figure 12.3. At an interest rate of 8%, there is (a) an excess supply of money of 250 (b) an excess supply of money of 150 (©) an excess demand for money of 200 (d) an excess demand for money of...
9. Why are US and Australian government securities referred to as a bank's secondary reserves? A. They are the same thing as vault cash. C. Their current market value may count toward meeting a bank's legal reserve requirements Banks are legally required to hold a certain minimum amount of these securities. D.
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...
9 In the U.S econormy the money supply is cot A) U.S Treasury. B) Federal Reserve System D) Senate Committee on Banking and Finance. 10. Ceteris paribus, if the Fed raised the required reserve ratio A) Banks could increase their lending B) The Federal funds interest rate would rise. The size of the monetary multiplier would decrease. D) The size of the monetary multiplier would increase. 11. Money is created when A) Loans are made. Checks written on one bank...
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