OPTION D $900
QUESTION 43 2 p Suppose that initially a bank has excess reserves of $500 and the...
QUESTION 3 Suppose that initially a bank has an excess reserves of $600 and the required reserve is 20%. Then Andy deposits 51200 into his checking account, and the bank lends $500 to Molly. The bank can lend additional:
stion Completion Status: Path: Words QUESTION 3 Suppose that initially a bank has an excess reserves of $600 and the required reserve is 20%. Then Andy deposits $1200 into his checking account, and the bank lends $500 to Molly. The bank can lend additional: TT T Arial ✓ 3 (12pt) TE Path Words 0 Ce Save and Submit to save and submit Click Save anders to save all anster
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve raises the required reserve ratio to 12 percent, then the bank will now have excess reserves of A) $12,000. B) $0. C) -$2,000. D) -$12,000.
Suppose that a bank with no excess reserves receives a deposit into a checking account of $19,000 in currency. If the required reserve ratio is 0.07, what is the maximum amount that the bank can lend out? The bank can lend out $(Enter your response as an integer) Enter your answer in the answer box
If a bank has excess reserves of $20,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of O A) $16,000. OB) $20,000. OC) $26,000. OD) $36,000.
A bank has excess reserves of $10,000 and demand deposits of $50,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, this bank can lend a maximum of: $5000. $7500. $10,000. $25000.
Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank If the bank maintains a serve ration of 10%, how will it respond to the new deposit? 12. (Problem 5b) Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank. If the bank maintains a reserve ratio of 10%, how will it respond to the new deposit? O The bank will hold $50 as...
Prior to 2008, the Fed did not pay interest on bank reserves. If banks charged 10% on loans and the required reserve ratio was 12%, then for every S1000 in deposits, the amount that banks lost in forgone interest (opportunity cost) because of reserve requirements is $(Round your response to the nearest two decimal place.) Without any interest in reserves, if the interest rate is equal to 5% and the reserve ratio is 15%, then the foregone interest per $500...
A chartered bank has $1 million in deposits and $40,000 in desired reserves. Its excess reserves are initially zero. a. The reserve ratio in the banking system is .......%. b. If a further $100,000 is deposited in this bank then the bank's desired reserves increase by $.......while the bank's excess reserves increase by $........ c. The banking system can increase the money supply by this bank's initial amount of $........multiplied by the money multiplier of ...........for a final increase in...
Complete the sentences. The ratio of reserves to deposits that a bank plans to hold is its If a bank has $10 million in actual reserves and 58 million in desired reserves, then it has O A. planned deposit ratio, a shortage of currency O B. desired deposit ratioa shortage of deposits OC. desired reserve ratio, excess reserves O D. planned reserve ratio; a currency drain