Homework Answers
(a)
Required reserves = Deposit x reserve ratio = $7000 x 10% = $700
Excess reserves = Deposit - required reserves = $7000 - $700 = $6300
| Assets | $ | Liabilities | $ |
| Reserves | Deposits | 7000 | |
| Required | 700 | ||
| Excess | 6300 | ||
| 7000 | |||
| Total assets | 7000 | Total liabilities | 7000 |
(b) Potential deposit creation = Excess reserves / Reserve ratio = 6300 / 0.1 = 63000
Add Answer to:
A bank has $7,000 in deposits and the required reserve ratio is 10 percent. Based on...
help! If you withdraw $5,000 from your checking account and the required reserve ratio is 19...
help!
If you withdraw $5,000 from your checking account and the required reserve ratio is 19 percent, then the bank's Instructions: Enter your responses as a whole number a. Total deposits fall by $ 5000 1 b. Required reserves fall c Excess reserves fall by $_ by $ If you deposit a $500 check in your checking account and the required reserve ratio is 19 percent, then the bank's Instructions: Enter your responses as a whole number d. Total deposits...
Assets Reserves Loans Liabilities $3,000 Deposits $450 $2,550 The required reserve ratio is 12 percent. Given...
Assets Reserves Loans Liabilities $3,000 Deposits $450 $2,550 The required reserve ratio is 12 percent. Given its deposits of $3,000, the bank is required to hold $ 360 as reserves. (Enter your response as an integer.) The bank holds excess reserves of $ 90. (Enter your response as an integer.) The bank can increase its loans by $ 750 . (Round your response to two decimal places.) Suppose a depositor comes to the bank and withdraws $200 in cash. Show...
1) Bank 1 has deposits of $4141 and reserves of $455. If the required reserve ratio...
1) Bank 1 has deposits of $4141 and reserves of $455. If the required reserve ratio is 10%, what is the value of the bank's excess reserves? Enter a whole number with no dollar sign. Round to the nearest whole number. 2) In a fractional reserve banking system a. banks hold a fraction of deposits as reserves. b. the reserve ratio measures the percentage of deposits available to be lent out. c. banks hold a fraction of reserves as deposits....
Third National Bank has reserves of $10,000 and checkable deposits of $100,000. The reserve ratio is 10 percent. Househo...
Third National Bank has reserves of $10,000 and checkable deposits of $100,000. The reserve ratio is 10 percent. Households deposit $15,000 in currency into the bank and that currency is added to reserves. What level of excess reserves does the bank now have?
1) Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10...
1) Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent. The maximum loan your bank can made as a direct result of your deposit is Answer: $1,800 2) If the reserve requirement ratio (RR) is 0.20, the simple deposit multiplier is Answer: 5 3) Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 20 percent. If the Federal Reserve reduces the required...
If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent
If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is A) $30,000. B) $25,000. C) $20,000. D) $10,000.
The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio...
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...
1. The manager of the bank where you work tells you that your bank has $10.9...
1. The manager of the bank where you work tells you that your bank has $10.9 million in excess reserves. She also tells you that the bank has $203 million in deposits and $164 million in loans. Given this information you find that the reserve requirement must be what percent? Enter a number rounded to one decimal place. You may assume that the bank does not hold any other assets or liabilities besides reserves, loans, and deposits. 2. Suppose we...
Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve...
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? $
1. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable...
1. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is billion. 2. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the currency-deposit ratio is...
help!
If you withdraw $5,000 from your checking account and the required reserve ratio is 19 percent, then the bank's Instructions: Enter your responses as a whole number a. Total deposits fall by $ 5000 1 b. Required reserves fall c Excess reserves fall by $_ by $ If you deposit a $500 check in your checking account and the required reserve ratio is 19 percent, then the bank's Instructions: Enter your responses as a whole number d. Total deposits...
Assets Reserves Loans Liabilities $3,000 Deposits $450 $2,550 The required reserve ratio is 12 percent. Given its deposits of $3,000, the bank is required to hold $ 360 as reserves. (Enter your response as an integer.) The bank holds excess reserves of $ 90. (Enter your response as an integer.) The bank can increase its loans by $ 750 . (Round your response to two decimal places.) Suppose a depositor comes to the bank and withdraws $200 in cash. Show...
1. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is billion. 2. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the currency-deposit ratio is...
Most questions answered within 3 hours.
-
Suppose in the short run a firm’s production function is given
by Q = L1/2*K1/2, and...
asked 7 minutes ago -
Calculation of number of protons, neutrons , and electrons
If given the mass # of 74...
asked 8 minutes ago -
On the Apollo 14 mission to the moon, astronaut Alan Shepard hit
a golf ball with...
asked 21 minutes ago -
are primates eutherians?
i know eutherians come from therians but does primates come from
eutharia bc...
asked 26 minutes ago -
Calculate the specific heat of a certain unknown metal, if it
requires 195 joules of heat...
asked 37 minutes ago -
Identify the characteristics of a successful
project.
Describe the phases the project lifecycle.
Define the roles...
asked 46 minutes ago -
1. In Module 2 "headers" and "footers" are
described. Explain the difference between them and how...
asked 41 minutes ago -
Three polarizing filters are stacked with the polarizing axes of
the second and third at 58.5...
asked 50 minutes ago -
The capacitance in a series RCL circuit is C1 = 3.3 μF, and
the corresponding resonant...
asked 1 hour ago -
A 357.7-gram sample of an unknown substance (MM = 92.41 g/mol)
is heated from -23.1 °C...
asked 59 minutes ago -
The project aims to design a network for a casino. The casino
has 10 floors including...
asked 1 hour ago -
Combustion of an unknown compound containing only carbon and
hydrogen produces 54.9 g of CO₂ and...
asked 1 hour ago