2. Study Questions and Problems #2 If you deposit $40 into a checking account, and your...
2. Study Questions and Problems #2
If you deposit $40 into a checking account, and your bank has a 10% reserve requirement, the bank’s excess reserves will rise by how much?
Homework Answers
Deposit=$40 which is kept by the banks
when reserve requirement=10% which means 10% of $40 deposit has to be kept by the bank as a reserve requirement
Thus reserve required=$4
Excess reserves=40-4=$36
Add Answer to:
2. Study Questions and Problems #2
If you deposit $40 into a checking account, and your...
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...
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...
a) A customer deposits $10,000 check into her checking account. Use a T-account to show how...
a) A customer deposits $10,000 check into her checking account. Use a T-account to show how her bank will reflect this transaction. b) Using a T-account, show how the bank will reflect the transaction once the funds become available. c) Assuming the bank has a 10% required reserve requirement, show on a T-account the required and excess reserves. d) Assume that this bank decides to make a car loan using the excess reserves from our customer's deposit. Show this transaction...
1. Suppose you withdraw $500 from your checking account at your bank, which has a required...
1. Suppose you withdraw $500 from your checking account at your bank, which has a required reserve ratio of 30%. Initially, as a result of your this transaction, the size of M1 will.... (Increase/decrease/remain unchanged) . Before any further actions by your bank, the reserves in your bank..... Increase/decrease/remain unchanged) by... while the excess reserves of your bank ..... (Increase/decrease/remain unchanged) by .... 2. Suppose that the general public decided to decrease its holdings of currency and increase its checking...
Suppose that a bank with no excess reserves receives a deposit into a checking account of...
Suppose that a bank with no excess reserves receives a deposit into a checking account of $19,000 in currency. If the required reserve ratio is 0.07, what is the maximum amount that the bank can lend out? The bank can lend out $(Enter your response as an integer) Enter your answer in the answer box
Suppose you found $1,000 hidden in your mattress and deposited it in a demand deposit account at your bank
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
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...
Tracy Williams deposits $500 that was in her sock drawer into a checking account at the...
Tracy Williams deposits $500 that was in her sock drawer into a
checking account at the local bank
If the bank maintains a serve ration of 10%, how will it respond
to the new deposit?
12. (Problem 5b) Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank. If the bank maintains a reserve ratio of 10%, how will it respond to the new deposit? O The bank will hold $50 as...
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required...
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.
Suppose the Federal Reserve purchases $10,000 of Treasury bonds from you and that you deposit the...
Suppose the Federal Reserve purchases $10,000 of Treasury bonds from you and that you deposit the $10,000 into your checking account deposit at Bank Y. Assume that Bank Y has no excess reserves at the time you make your deposit and that the required reserve ratio is 20 percent. a. Use a T-account to show the initial effect of this transaction on Bank Y's balance sheet. b. Suppose that Bank Y makes the maximum loan they can from the funds...
a) A customer deposits $10,000 check into her checking account. Use a T-account to show how her bank will reflect this transaction. b) Using a T-account, show how the bank will reflect the transaction once the funds become available. c) Assuming the bank has a 10% required reserve requirement, show on a T-account the required and excess reserves. d) Assume that this bank decides to make a car loan using the excess reserves from our customer's deposit. Show this transaction...
Suppose that a bank with no excess reserves receives a deposit into a checking account of $19,000 in currency. If the required reserve ratio is 0.07, what is the maximum amount that the bank can lend out? The bank can lend out $(Enter your response as an integer) Enter your answer in the answer box
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...
Tracy Williams deposits $500 that was in her sock drawer into a
checking account at the local bank
If the bank maintains a serve ration of 10%, how will it respond
to the new deposit?
12. (Problem 5b) Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank. If the bank maintains a reserve ratio of 10%, how will it respond to the new deposit? O The bank will hold $50 as...
Suppose the Federal Reserve purchases $10,000 of Treasury bonds from you and that you deposit the $10,000 into your checking account deposit at Bank Y. Assume that Bank Y has no excess reserves at the time you make your deposit and that the required reserve ratio is 20 percent. a. Use a T-account to show the initial effect of this transaction on Bank Y's balance sheet. b. Suppose that Bank Y makes the maximum loan they can from the funds...
Most questions answered within 3 hours.
-
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 49 minutes ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 1 hour ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 1 hour ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 1 hour ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 1 hour ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 1 hour ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 1 hour ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 1 hour ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 1 hour ago -
How do ECM Solutions assist in embedding a culture of continuous
improvement in an organization? (Project...
asked 1 hour ago -
Directions
These directions introduce the idea of Essential Questions.
Since this may be a new concept...
asked 1 hour ago -
1.b. Fiscal policy is said to suffer from ‘crowding out’.
Explain what this means and why...
asked 1 hour ago