Homework Answers
Correct Answer:
C
Working note:
In the given scenario, money supply will increase.
Increase in money supply = deposits *(1/required reserve ratio)
Increase in money supply = 1000*(1/20%)
Increase in money supply = $5000
Add Answer to:
Samantha sells a government bond worth $1,000 to the Federal Reserve. If Samantha deposits the entire...
Assume that Elliott deposits $1,000 in coins he collected into his checking account. The required reserve...
Assume that Elliott deposits $1,000 in coins he collected into his checking account. The required reserve ratio for the banking system is 10% and Elliott’s bank was fully loaned up prior to his deposit. Explain the immediate effect of his deposit on the M1 measure of the money supply. Calculate the following: the maximum amount the bank will loan out the maximum increase in the money supply as a result of this transaction Now assume that the Federal Reserve purchases...
When the Federal Reserve conducts open market operations, it buys or sells government bonds. buys and...
When the Federal Reserve conducts open market operations, it buys or sells government bonds. buys and sells foreign currency. manipulates of the rate at which it loans to member banks. increases or decreases the required reserve ratio. How will the Fed's policy action change the money supply? Use only the actions corresponding to your choice in the previous part. The money supply increases The money supply decreases Answer Bank Answer Bank The Fed sells foreign currency The Fed buys bonds...
-0- If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank,...
-0- If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank, then the __in the economy will by $45 million. reserves, increases reserves, decrease currency in circulation; descrease currency in circulation; increase Question 4 1 pts Using the simply money multiplier model, what quantity of securities must the Federal Reserve purchase to generate an increase in the size of checkable deposits by $22,500, assuming the required reserve ratio is 4%? 810 aso
Given that the required reserve ratio is 25%. If the Fed sells $5 million worth of...
Given that the required reserve ratio is 25%. If the Fed sells $5 million worth of government securities to the Bank of America, the change in the money supply will, at most, be
If a bond dealer sells a government bond to the Fed for $100,000, and the reserve...
If a bond dealer sells a government bond to the Fed for $100,000, and the reserve ratio is 10 percent, then the bank that receives a $100,000 deposit from the dealer can expand its loans by ________, and the money supply can increase by as much as ________. A. $90,000; $900,000 B. $80,000; $800,000 C. $10,000; $100,000 D. $90,000; $1,000,000
Assume that the required reserve ratio is 15 percent and that SAMA sells SR3 million worth...
Assume that the required reserve ratio is 15 percent and that SAMA sells SR3 million worth of government bonds to a costumer who pays with a check drawn on the Riyad Bank. we got money supply change by 20,000,0000 . What is the maximum change in the money supply that can result from this sale?
d. $200 reserve ratio is 5 percent and the bank has $1,000 in deposits. Its reserves...
d. $200 reserve ratio is 5 percent and the bank has $1,000 in deposits. Its reserves amount to S5. S50. c. $95. d. $950 Suppose banks desire to hold no excess reserves and that the Fed has set a reserve requirement of 10 percent. If you deposit $9,000 into First Jayhawk Bank, a. First Jayhawk's required reserves increase by $900. b. First Jayhawk will be able to lend out $8,100 c. First Jayhawk's assets and liabilities both will increase by...
The Federal Reserve System is under the strict control of
Question 6 The Federal Reserve System is under the strict control ofQuestion 6 options:the executive branchthe legislative branchthe judicial branchthe International Monetary Fundnone of the aboveQuestion 7 The Fed typically increases the money supply byQuestion 7 options:selling government bondsbuying government bondsselling government loansprinting more currencybuying government loansQuestion 8If the Federal Reserve wishes to increase the money supply by $30,000 and the reserve requirement ratio is 0.4, how big a purchase of bonds will the Fed need to makeQuestion 8 options:$75,000$12,000$1,000$30,000$3,000Question 9The Federal...
Suppose that the Federal Reserve Bank buys $21,100 worth of securities and then, as a result,...
Suppose that the Federal Reserve Bank buys $21,100 worth of securities and then, as a result, total size of checkable deposits in the economy increase by $422,000. In this case, the required reserve ratio must be o 2% O 5% 0 7.5% 0 9.5%
Consider the balance sheet for the Wahoo bank as presented below. Wahoo Bank Balance Sheet Assets Liabilities government securities $1,600 Liabilities: Checkin...
Consider the balance sheet for the Wahoo bank as presented below. Wahoo Bank Balance Sheet Assets Liabilities government securities $1,600 Liabilities: Checking accounts $4,000 Required Reserves $400 Net Worth $1,000 Excess Reserves $0 Loans $3,000 Total Assets $5,000 Total Liabilities $5,000 Using a required reserve ratio of 10% and assuming that the bank keeps no excess reserves, write the changes to the balance sheet for each of the following scenarios: Bennett withdraws $500 from his checking account. The Fed buys...
When the Federal Reserve conducts open market operations, it buys or sells government bonds. buys and sells foreign currency. manipulates of the rate at which it loans to member banks. increases or decreases the required reserve ratio. How will the Fed's policy action change the money supply? Use only the actions corresponding to your choice in the previous part. The money supply increases The money supply decreases Answer Bank Answer Bank The Fed sells foreign currency The Fed buys bonds...
-0- If the Federal Reserve Bank sells $45 million worth of securities to a commercial bank, then the __in the economy will by $45 million. reserves, increases reserves, decrease currency in circulation; descrease currency in circulation; increase Question 4 1 pts Using the simply money multiplier model, what quantity of securities must the Federal Reserve purchase to generate an increase in the size of checkable deposits by $22,500, assuming the required reserve ratio is 4%? 810 aso
d. $200 reserve ratio is 5 percent and the bank has $1,000 in deposits. Its reserves amount to S5. S50. c. $95. d. $950 Suppose banks desire to hold no excess reserves and that the Fed has set a reserve requirement of 10 percent. If you deposit $9,000 into First Jayhawk Bank, a. First Jayhawk's required reserves increase by $900. b. First Jayhawk will be able to lend out $8,100 c. First Jayhawk's assets and liabilities both will increase by...
Suppose that the Federal Reserve Bank buys $21,100 worth of securities and then, as a result, total size of checkable deposits in the economy increase by $422,000. In this case, the required reserve ratio must be o 2% O 5% 0 7.5% 0 9.5%
Most questions answered within 3 hours.
-
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 49 minutes ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 51 minutes ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 57 minutes ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 1 hour ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 1 hour ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 1 hour ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 1 hour ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 1 hour ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 1 hour ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 1 hour ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 1 hour ago -
Inheritance pattern in BRCA 1
Describe the inheritance pattern of BRCA 1 Is it recessive or...
asked 1 hour ago