The Federal Reserve buys $2000 in bonds from Jill who deposits the funds in Jack's Bank....
The Federal Reserve buys $2000 in bonds from Jill who deposits the funds in Jack's Bank. Jack's Bank then lends Jacquita $500. After all of these transaction are complete, the Reserves in Jack's Bank have risen by $_____ .
Homework Answers
Answer: $1500
When Jill deposited $2000 in Jack's bank, it had $2000 extra reserves in his bank. But after that the bank lends to Jacquita $500, so $500 goes from his reserves to Jacquita. So the bank has now $2000 - $500 = $1500 left as extra reserve. And the reserves in Jack's bank have risen by $1500.
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The Federal Reserve buys $2000 in bonds from Jill who deposits
the funds in Jack's Bank....
The Federal Reserve buys $2000 in bonds from Jill who deposits the funds in Jack's Bank....
The Federal Reserve buys $2000 in bonds from Jill who deposits the funds in Jack's Bank. Jack's Bank then lends Jacquita $500. After all of these transaction are complete, the money supply has risen by $_____ .
BSW Bank currently has $300 million in transaction deposits on its balance sheet. The Federal Reserve...
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a. Show the balance sheet of the Federal Reserve
and National Bank if National Bank converts all excess reserves to
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b. Show the balance sheet of the Federal Reserve
and National Bank if...
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