Homework Answers
Answer : Option c) required reserves and excess reserves
Every bank has some regulatory reserve requirement to maintain. That is they need to maintain a fraction of their deposits as reserves in order to ensure smooth functioning of the day to day activities.
Any reserves with the bank, above the given reserve requirement is known as excess reserves.
Thus a commercial bank's reserves comprise of two components = Required Reserves + Excess Reserves.
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The reserves of a commercial bank consist of Multiple Choice the bank's net worth. the amount...
Question 1 (1 point) The amount of reserves that a commercial bank is required to hold...
Question 1 (1 point)
The amount of reserves that a commercial bank is required to
hold is equal to:
Question 1 options:
the amount of its checkable deposits.
the sum of its checkable deposits and time deposits.
its checkable deposits multiplied by the reserve
requirement.
its checkable deposits divided by its total assets.
Save
Question 2 (1 point)
Answer the question on the basis of the following information
for the Moolah Bank.
Refer to the information and assume that Moolah...
Which of the following would increase the money supply? Multiple Choice Commercial banks use excess reserves...
Which of the following would increase the money supply? Multiple Choice Commercial banks use excess reserves to buy government bonds from the Federal Reserve. Commercial banks sell government bonds to the Federal Reserve. Commercial banks loan out excess reserves O A check clears from Bank A to Bank B. < Prey 5 of 35
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...
You have 2 attempts remaining. Aurumville Bank's assets consist of $2000 in reserves and $11200 in...
You have 2 attempts remaining. Aurumville Bank's assets consist of $2000 in reserves and $11200 in bonds. In terms of libabilities, they have $6600 in checkable deposits with their customers. This gives them a net worth of $6600, which is the value of assets ($2000 + $11200) minus liabilities ($6600). The Federal Reserve conducts Open Market Operations by buying $1500 worth of bonds from Aurumville Bank. By how much do Aurumville Bank's reserves increase in order to conduct this policy?...
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.
Which of the following would reduce the money supply? Multiple Choice An open market sale of...
Which of the following would reduce the money supply? Multiple Choice An open market sale of government bonds by the Fed. Commercial banks use excess reserves to buy government bonds from the public. Taasisi An open market purchase of government bonds by the Fed. A check clears from Bank A to Bank B.
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A)...
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A) the chair of the Board of Governors along with the 12 presidents of the Fede ent of the New York al Reserve System along with Banks. B) the seven members of the Board of Governors along with the president of the Federal Reserve Bank. C) the seven members of the Board of Governors of the Federal Reserve S the three members of the Council...
A commercial bank has reserves of $64, loans of $521 and checkable deposits of $585. The...
A commercial bank has reserves of $64, loans of $521 and checkable deposits of $585. The bank experiences a cash outflow of $11. If the required reserve ratio is 7%, what are the bank's excess reserves after the outflow?
QUESTION 8 A commercial bank's reserves are A. liabilities to the commercial bank and assets to...
QUESTION 8 A commercial bank's reserves are A. liabilities to the commercial bank and assets to the Federal Reserve Bank holding them. B. assets to both the commercial bank and the Federal Reserve Bank holding them. O Cassets to the commercial bank and liabilities to the Federal Reserve Bank holding them. D. liabilities to both the commercial bank and the Federal Reserve Bank holding them. QUESTION 9 2 Million GOP 112 ? The diagram above is a representation of the...
If the Federal Reserve Bank sells $130 million worth of securities to a commercial bank, then the reserves in the econom...
If the Federal Reserve Bank sells $130 million worth of securities to a commercial bank, then the reserves in the economy ____ by $130 million and the monetary base ____ by $130 million. Group of answer choices decrease; decreases decrease; increases increase; decreases increase; increases
Question 1 (1 point)
The amount of reserves that a commercial bank is required to
hold is equal to:
Question 1 options:
the amount of its checkable deposits.
the sum of its checkable deposits and time deposits.
its checkable deposits multiplied by the reserve
requirement.
its checkable deposits divided by its total assets.
Save
Question 2 (1 point)
Answer the question on the basis of the following information
for the Moolah Bank.
Refer to the information and assume that Moolah...
Which of the following would increase the money supply? Multiple Choice Commercial banks use excess reserves to buy government bonds from the Federal Reserve. Commercial banks sell government bonds to the Federal Reserve. Commercial banks loan out excess reserves O A check clears from Bank A to Bank B. < Prey 5 of 35
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...
You have 2 attempts remaining. Aurumville Bank's assets consist of $2000 in reserves and $11200 in bonds. In terms of libabilities, they have $6600 in checkable deposits with their customers. This gives them a net worth of $6600, which is the value of assets ($2000 + $11200) minus liabilities ($6600). The Federal Reserve conducts Open Market Operations by buying $1500 worth of bonds from Aurumville Bank. By how much do Aurumville Bank's reserves increase in order to conduct this policy?...
Which of the following would reduce the money supply? Multiple Choice An open market sale of government bonds by the Fed. Commercial banks use excess reserves to buy government bonds from the public. Taasisi An open market purchase of government bonds by the Fed. A check clears from Bank A to Bank B.
of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A) the chair of the Board of Governors along with the 12 presidents of the Fede ent of the New York al Reserve System along with Banks. B) the seven members of the Board of Governors along with the president of the Federal Reserve Bank. C) the seven members of the Board of Governors of the Federal Reserve S the three members of the Council...
QUESTION 8 A commercial bank's reserves are A. liabilities to the commercial bank and assets to the Federal Reserve Bank holding them. B. assets to both the commercial bank and the Federal Reserve Bank holding them. O Cassets to the commercial bank and liabilities to the Federal Reserve Bank holding them. D. liabilities to both the commercial bank and the Federal Reserve Bank holding them. QUESTION 9 2 Million GOP 112 ? The diagram above is a representation of the...
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