If a bank has excess reserves of $20,000 and demand deposit liabilities of $80,000, and if...
1.The sum of the Fed's monetary liabilities and the U.S. Treasurry's monetary liabilities is called A) the money supply. B) currency in circulation. C) the monetary base. D) bank reserves D) balk eserves 2. If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of A) $26,000. B) $20,000 C) $6,000. D) $16,000. E) $36,000 3. A bank has excess reserves of...
ommercial Bank has $5,000 in excess reserves, $90,000 in checkable deposit and the reserve ratio is 30 percent. The bank must have: A. $35,000 in reserves. B. $32,000 in reserves. C. $10,000 in reserves. D. 15,000 in reserves 23. Suppose a commercial bank has checkable deposits of $100,000 and the legal reserve ratio is A. are $17,000. 10 percent. If this bank has $ 17,000 in reserves, then its excess reserves: B. are $10,000. C. are $7,000. D. are $1,700...
The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Using balance sheet A, how would this look. How much excess reserves currently exist for the bank? Households deposit $5000 in currency into the bank that is added to reserves. (Show this addition on the balance sheet A. What level of excess reserves does the bank now have? Assuming the excess reserves become loans, what would this look like on the...
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
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.
QUESTION 43 2 p Suppose that initially a bank has excess reserves of $500 and the reserve ratio is 25%. Then Andy deposits $1,200 of cash into his checking account and the bank lends $400 to Molly. That bank can lend an additional O A 5800 OB. $1400 OC. $1300 OD 5900 O E $1000
6. Required and excess reserves Suppose that Second Republic Bank currently has $200,000 in demand deposits and $130,000 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Reserves (Dollars) Second Republic Required Reserves (Dollars) Excess Reserves (Dollars)
Suppose you found $1,000 hidden in your mattress and deposited it in a demand deposit account at your bank. If the reserve requirement was 20 percent, the deposit would directly create in excess reserves and ultimately lead to a total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves.A. $800 ; $4,000B. $800 ; $5,000C. $1,000 ; $4,000D. $1,000 ; $5,000
Question 27 (16 points) A commercial bank has actual reserves of $16,000 and checkable-deposit liabilities of $65,000, and the required reserve ratio is 0. 10. This bank can loan outs at the moment Your Answer: Answer
Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. The bank sells $20,000 in securities to the Federal Reserve Bank in its district, receiving a $20,000 increase in reserves in return. Instructions: Enter your answer as a whole number. What level of excess reserves does the bank now have? $