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.
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A bank has excess reserves of $10,000 and demand deposits of $50,000 when the required reserve...
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve raises the required reserve ratio to 12 percent, then the bank will now have excess reserves of A) $12,000. B) $0. C) -$2,000. D) -$12,000.
A bank has $100,000 of checkable deposits and a roquired reserve ratio of 25 excess reserves? percent. The bank currently holds $75,000 in reserves How much of these reserves are Excess reserves are s.(Round your response to the nearest dollr)
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...
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?
If a bank has $10 million in deposits, excess reserves of $200,000, and required reserves of $1 million, a. what are its total reserves? b. what is the required reserve ratio?
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)
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.
QUESTION 3 Suppose that initially a bank has an excess reserves of $600 and the required reserve is 20%. Then Andy deposits 51200 into his checking account, and the bank lends $500 to Molly. The bank can lend additional:
4. Suppose Bantam Bank has excess reserves of $8,000 and checkable deposits of $150,000. If the required reserve ratio is 20%. a. What is the size of the bank's actual reserves? b. If Bob deposits $10,000 into the bank, how much will the money supply increase? c. What is the money multiplier for this banking system?
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...