The same stock of money can count as () to a bank and () to an...
The same stock of money can count as () to a bank and () to an individual.
A. deposits; reserves
B. reserves; deposits
C. money; reserves
D. deposits; money
Homework Answers
The same stock of money can count as reserves to a bank and deposit to an individual.
When stock of money into a bank , is considered as reserves by bank. The total deposit in a bank consists two reserve . first required reserve and second excess reserve.so for bank that is reserve.
But the people who deposit money ( the same money) is deposit for them.
So people consider the same money as deposit.
Bank runs a. will affect neither the money supply nor the money multiplier. b. increase the...
Bank runs a. will affect neither the money supply nor the money multiplier. b. increase the money supply c. can be neither prevented nor mitigated by the Federal Reserve. d. are a problem because banks only hold a fraction of deposits as reserves.
Do federal gold reserves count as M1 money? A. No, gold is not part of M1...
Do federal gold reserves count as M1 money? A. No, gold is not part of M1 money B. No, but gold is included in M2 money C. Yes, gold is counted as part of checkable deposits D. Yes, gold is counted as part of currency
- The total money supply M has two components: bank deposits D and cash holdings C,...
- The total money supply M has two components: bank deposits D and cash holdings C, which we assume to bear a constant ratio C/D=C,0 <<<1. The high-powered money H is defined as the sum of cash holdings held by the public and the reserves held by the banks. Bank reserves are a fraction of bank deposits, determined by the reserve ratio r. 0 <r <1. (0) Express the money supply Mas a function of high-powered money H. (b) Would...
5. Define the money supply (M) as the sum of currency holdings (C) and bank deposits...
5. Define the money supply (M) as the sum of currency holdings (C) and bank deposits (D). Assume that C 240, that total bank reserves are 120, that required reserves are one-sixth of deposits, and that banks wish to hold excess reserves according to the schedule: E 60-, 5 is a 5% interest rate). where r is the rate of interest in percentage points (e.g.,
1. The goldsmith's ability to create money was based on the fact that: a) withdrawals of...
1. The goldsmith's ability to create money was based on the fact that: a) withdrawals of gold tended to exceed deposits of gold in any given time period. b) consumers and merchants preferred to use gold for transactions, rather than paper money. c) the goldsmith was required to keep 100 percent gold reserves. d) deposits of gold tended to exceed withdrawals of gold in any given time period. 2. In a fractional reserve banking system: a) deposit insurance increases the...
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...
The total money supply M has two components: bank deposits D and cash holdings C which we assume to bear a constant rat...
The total money supply M has two components: bank deposits D and cash holdings C which we assume to bear a constant ratio C/D money H is defined as the sum of cash holdings held by the public and the reserves held by the banks. Bank reserves are a fraction of bank deposits, determined by the reserve ratio r, 0 <r<1 c, 0 < c< 1. The high-powered (a) Express the money supply M as a function of high-powered money...
A bank currently has $70,000 in transaction deposits, $6,000 in cash in the vault, $12,000 on...
A bank currently has $70,000 in transaction deposits, $6,000 in cash in the vault, $12,000 on deposit with the Fed, and $7,000 in government securities. The required reserve ratio is 20 percent. Answer these questions: 1) What is the maximum amount the money supply can increase, assuming this bank is the only bank in the system that has excess reserves? You need to know how to calculate actual reserves, required reserves, excess reserves, and the money multiplier to solve this...
The sum of currency and bank deposits at the central bank is called: a. the money...
The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. Official intervention in the foreign exchange market to defend a fixed exchange rate when the value of the country's currency is under downward pressure causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
need answer ASAP please!!! Single bank accounting 1. A simplified balance sheet for the local bank...
need answer ASAP please!!!
Single bank accounting 1. A simplified balance sheet for the local bank is shown below. The required reserve ratio is 20%. All figures are in thousands. (Required reserve for only deposits) / Liabilities and net worth Reserves(Fed) Securities Loans Property $1200 Checkable deposits 750 Stock shares 3500 550 1000 a. How much is this bank required to hold in reserve? How much does the bank currently hold in excess reserves? b. Suppose the bank lends out...
- The total money supply M has two components: bank deposits D and cash holdings C, which we assume to bear a constant ratio C/D=C,0 <<<1. The high-powered money H is defined as the sum of cash holdings held by the public and the reserves held by the banks. Bank reserves are a fraction of bank deposits, determined by the reserve ratio r. 0 <r <1. (0) Express the money supply Mas a function of high-powered money H. (b) Would...
5. Define the money supply (M) as the sum of currency holdings (C) and bank deposits (D). Assume that C 240, that total bank reserves are 120, that required reserves are one-sixth of deposits, and that banks wish to hold excess reserves according to the schedule: E 60-, 5 is a 5% interest rate). where r is the rate of interest in percentage points (e.g.,
The total money supply M has two components: bank deposits D and cash holdings C which we assume to bear a constant ratio C/D money H is defined as the sum of cash holdings held by the public and the reserves held by the banks. Bank reserves are a fraction of bank deposits, determined by the reserve ratio r, 0 <r<1 c, 0 < c< 1. The high-powered (a) Express the money supply M as a function of high-powered money...
The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. Official intervention in the foreign exchange market to defend a fixed exchange rate when the value of the country's currency is under downward pressure causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
need answer ASAP please!!!
Single bank accounting 1. A simplified balance sheet for the local bank is shown below. The required reserve ratio is 20%. All figures are in thousands. (Required reserve for only deposits) / Liabilities and net worth Reserves(Fed) Securities Loans Property $1200 Checkable deposits 750 Stock shares 3500 550 1000 a. How much is this bank required to hold in reserve? How much does the bank currently hold in excess reserves? b. Suppose the bank lends out...
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