Homework Answers
1. The answer is "A"
Excess reserve is equals to Total Reserve - Required Reserve
2. The answer is "C"
The bank is said to be loaned up when its excess reserves with central bank falls to zero, which means bank hold no excess reserve with central bank and is loaned to generate return.
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excess reserves are equal to
Excess reserves are equal to: S a . total reserves minus...
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...
When can a bank make loans? a. when it has the minimum amount of required reserves...
When can a bank make loans? a. when it has the minimum amount of required reserves b. only when it is confident that it can meet all the cash needs of depositors c. only when it has deposited all cash at the Federal Reserve d. when it has reserves greater than the amount of required reserves e. There is not enough information to solve this problem. 37. In a fractional reserve banking system, banks a. are able to create money...
4&5 please QUESTION 4 Which of the following is correct? O Required reserves equal excess reserves...
4&5 please
QUESTION 4 Which of the following is correct? O Required reserves equal excess reserves minus actual reserves e Required reserves minus actual reserves equal excess reserves. e Required reserves equal actual reserves plus excess reserves O Actual reserves minus required reserves equal excess reserves. QUESTION 5 Answer the question on the basis of the following table for a commercial bank or thrift: Reserve Requirement Checkable ActualExcess (%) Deposits Reserves Reserves $100,000 $10,000 $o 20,000 12,000 4 12 20...
A chartered bank has $1 million in deposits and $40,000 in desired reserves. Its excess reserves...
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...
DJ. It has $559 in reserves and $9445 in loans. ? 2. The ability of banks...
DJ. It has $559 in reserves and $9445 in loans. ? 2. The ability of banks to create money has its source in which of the following A. the 100 percent reserve requirement B. fractional-reserve banking (i.e. less than 100 percent reserve requirement) C. the ability of the government to mint as much currency as it wishes D. the banks' ability to issue currency (bank notes) of their own ? 3. Which of the following items is a liability to...
Bank of BCP has total reserves of $40 million and current total checking deposit of $200...
Bank of BCP has total reserves of $40 million and current total checking deposit of $200 million. With a legal reserve requirement of10% of total checking accounts, what is the bank's legal reser ves and excess? If the bank creates a new loan in the form of new checking account equal to its excess reserves and each check is deposited in another commercial bank, what can the banking system do in total maximum new checking. accounts (loans), given the simple...
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...
If the banking system has demand deposits of $100,000, total reserves equal to $20,000, and a...
If the banking system has demand deposits of $100,000, total reserves equal to $20,000, and a required reserve ratio of 20 percent, the banking system can increase the volume of loans by Multiple Choice $O. $20,000. $80,000 $100,000O
The Federal Reserve specifies a percentage of checkable deposits that banks hold must hold as reserves...
The Federal Reserve specifies a percentage of checkable deposits that banks hold must hold as reserves (required reserves), which is called the required reserve ratio. Excess reserves are reserves that banks hold over and above the required reserves and can make loans. Suppose that Bank A has an increase in checkable deposits of $100 million and the required reserve is 10%. How much money can Bank A create by making loans? How much money can the banking system as a...
as Bank of Frank Assets Liabilities Total $25,000 Deposits $150,000 Reserves: Excess Required Reserves Loans $100,000...
as Bank of Frank Assets Liabilities Total $25,000 Deposits $150,000 Reserves: Excess Required Reserves Loans $100,000 Securities $25,000 The Required Reserve Ratio is 10% Select all that apply: We were unable to transcribe this image
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...
4&5 please
QUESTION 4 Which of the following is correct? O Required reserves equal excess reserves minus actual reserves e Required reserves minus actual reserves equal excess reserves. e Required reserves equal actual reserves plus excess reserves O Actual reserves minus required reserves equal excess reserves. QUESTION 5 Answer the question on the basis of the following table for a commercial bank or thrift: Reserve Requirement Checkable ActualExcess (%) Deposits Reserves Reserves $100,000 $10,000 $o 20,000 12,000 4 12 20...
DJ. It has $559 in reserves and $9445 in loans. ? 2. The ability of banks to create money has its source in which of the following A. the 100 percent reserve requirement B. fractional-reserve banking (i.e. less than 100 percent reserve requirement) C. the ability of the government to mint as much currency as it wishes D. the banks' ability to issue currency (bank notes) of their own ? 3. Which of the following items is a liability to...
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...
If the banking system has demand deposits of $100,000, total reserves equal to $20,000, and a required reserve ratio of 20 percent, the banking system can increase the volume of loans by Multiple Choice $O. $20,000. $80,000 $100,000O
as Bank of Frank Assets Liabilities Total $25,000 Deposits $150,000 Reserves: Excess Required Reserves Loans $100,000 Securities $25,000 The Required Reserve Ratio is 10% Select all that apply: We were unable to transcribe this image
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