ZuoTi.Pro
Question

If the reserve ratio was 20% and someone depositeu an additional $8,000, what would be the maximum increase in total deposits
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

here is the answer

If 20% is equal to 100

1% is 100/20=5

Additional deposition= dollar 8000

Money increases over time =dollar 8000 *5= dollar 40000 (optiond d)

0 0
Add a comment
Know the answer?
Add Answer to:
If the reserve ratio was 20% and someone depositeu an additional $8,000, what would be the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • If the reserve ratio was 20% and someone deposited an additional $8,000, what would be the...

    If the reserve ratio was 20% and someone deposited an additional $8,000, what would be the maximum increase in total deposits over time? $60,000 $266,667 $600,000 $6,000 $40,000

  • 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...

  • If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent

    If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is A) $30,000. B) $25,000. C) $20,000. D) $10,000.

  • why it is not required reserve devided by required reserve ratio？ 19) What is the maximum...

    why it is not required reserve devided by required reserve ratio？ 19) What is the maximum amount a bank can lend? A) Its total assets. B) Its reserves divided by the required reserve ratio. C) The value of its check deposits times the required reserve ratio. D) Its excess reserves.

  • If Bank of Mateer has a required reserve ratio of 40 percent and there is $100,000...

    If Bank of Mateer has a required reserve ratio of 40 percent and there is $100,000 in deposits, what is the amount of required reserves? Group of answer choices $100,000 $60,000 $15,000 $0 $40,000

  • 5. The following balance sheet is for Big Bucks Bank. The reserve ratio is 20 percent....

    5. The following balance sheet is for Big Bucks Bank. The reserve ratio is 20 percent. LO29.3 Assets Liabilities and net worth - (1) (2) (10 (212 Reserves $22,000 Checkable deposits $100,000 Securities 38,000 Loans 40,000 a. What is the maximum amount of new loans that Big Bucks Bank can make? Show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount. b. By how much has the supply of...

  • 1) Suppose the Fed's required reserve ratio (REQ) is 20%. Further suppose that the Fed buys...

    1) Suppose the Fed's required reserve ratio (REQ) is 20%. Further suppose that the Fed buys $100 million of U.S. Treasury securities from a dealer, Mary Jones, who deposits the check, which is drawn on the Fed, in her bank. This deposit increases her bank's reserve account (∆R) with the Fed by $100 million as well as its demand deposits, its total reserves, and the overall level of M1. What is the money multiplier?1) Suppose the Fed's required reserve ratio...

  • 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?...

  • 1. What is the value of M1 if the following is true? Coin and Currency: $80...

    1. What is the value of M1 if the following is true? Coin and Currency: $80 million Demand Deposits: $190 million Savings Deposits: $400 million Traveler's Checks: $10 million Time Deposits: $800 million $280 million $590 million $1,200 million $1,390 million $1,480 million 2.If you use money as a unit of account, you would be searching the Internet for a deal on a new computer. returning a sweater to the department store. buying a new radio. withdrawing $500 from your...

  • If the reserve ratio decreased from 20 percent to 10 percent, which of the following would...

    If the reserve ratio decreased from 20 percent to 10 percent, which of the following would happen to the money multiplier? a. It would rise from 10 to 20. b. It would rise from 5 to 10. c. It would fall from 10 to 5. d. It would fall from 20 to 5. 13. Which statement best describes the outcome of a decrease in the bank rate? a. Banks will borrow less from Bank of Canada, so reserves increase. b....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT