15. Which of the following items is assets of a bank _____? A. loans B. checking...
15. Which of the following items is assets of a bank _____? A. loans B. checking account deposits C. saving account deposits D. money borrowed from Federal Reserve
Homework Answers
15. The main asset of a Bank is the loans taken by the customer as it earns both principal and interest amount. Rest all options (Checking account deposits, saving account deposits, money borrowed from Federal Reserve) are obligations to Bank, that it has to return today or in the future. Hence, correct option is A.
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15. Which of the following items is assets of a bank _____? A.
loans B. checking...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a trade surplus, which is NOT correct-? A. Exports > Imports. C. Saving > Investment D. Net capital outflow> 0 17. Inflation will be reflected as the directly proportional change of A. Total money supply increase B. Nominal wage growth, but not nominal interest...
Gold, silver, and furs, when used as money, are referred to as a- fiat money b-precious...
Gold, silver, and furs, when used as money, are referred to as a- fiat money b-precious money c-paper currency d-commodity money The money supply is considered to be M1. M1 consists of what? a-currency + checking account balances + saving account balances b-currency + checking account balances + travelers' checks c-currency + checking account balances + credit cards d-currency + credit cards + certificates of deposit e-currency only The main purpose of financial intermediaries is that a-the process of finding...
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...
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...
Consider the balance sheet for the Wahoo bank as presented below. Wahoo Bank Balance Sheet Assets Liabilities government securities $1,600 Liabilities: Checkin...
Consider the balance sheet for the Wahoo bank as presented below. Wahoo Bank Balance Sheet Assets Liabilities government securities $1,600 Liabilities: Checking accounts $4,000 Required Reserves $400 Net Worth $1,000 Excess Reserves $0 Loans $3,000 Total Assets $5,000 Total Liabilities $5,000 Using a required reserve ratio of 10% and assuming that the bank keeps no excess reserves, write the changes to the balance sheet for each of the following scenarios: Bennett withdraws $500 from his checking account. The Fed buys...
We are given the following information about the assets and liabilities of a bank: a. The...
We are given the following information about the assets and
liabilities of a bank:
a. The Fed sets a reserve requirement of 3% on deposits between
$16 million and $122 million. If the bank holds $5 million dollars
in US Treasury Securities and $2 million in excess reserves,
compute the bank’s required reserve level and the quantity of loans
this bank is able to make to the public. b. What is the value of
the money multiplier? [Money Multiplier =...
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...
Question 13 (1 point) Which of the following is a liability of a commercial bank? Question...
Question 13 (1 point) Which of the following is a liability of a commercial bank? Question 13 options: vault cash loans deposits at the Federal Reserve checking deposits
I am not sure how to answer question 1d and e as well as question 2 YesBank has the following items on its balance sheet 1. 150 75 100 250 100 50 25 25 45 loans to corporations loans to households Ye...
I am not sure how to answer question 1d and e as well as
question 2
YesBank has the following items on its balance sheet 1. 150 75 100 250 100 50 25 25 45 loans to corporations loans to households YesBank's holdings of shares and bonds, etc retail current account deposits (deposits by general public with YesBank) commercial current account deposits (deposits by companies with YesBank) tangible assets and property cash in vaults reserve deposits with Bank of England...
Question 3 A bank has the following assets and liabilities: Mortgage Loans: $240 million Consumer Loans:...
Question 3 A bank has the following assets and liabilities: Mortgage Loans: $240 million Consumer Loans: $250 million Discount Loans: $25 million Demand Deposits: $400 million NOW Deposits: $100 million Treasuries: $25 million Municipal Bonds: $10 million a) The bank has 10% in required reserves and 8% in excess reserves. Calculate the bank capital and show the balance sheet of the bank. b) Assume that net profits after taxes are $6 million. Calculate ROA, ROE, EM, leverage ratio, and capital...
15. Which of the following items is assets of a bank A. loans B. checking account deposits C, saving account deposits D. money borrowed from Federal Reserve 16. In an open economy, if a country has a trade surplus, which is NOT correct-? A. Exports > Imports. C. Saving > Investment D. Net capital outflow> 0 17. Inflation will be reflected as the directly proportional change of A. Total money supply increase B. Nominal wage growth, but not nominal interest...
We are given the following information about the assets and
liabilities of a bank:
a. The Fed sets a reserve requirement of 3% on deposits between
$16 million and $122 million. If the bank holds $5 million dollars
in US Treasury Securities and $2 million in excess reserves,
compute the bank’s required reserve level and the quantity of loans
this bank is able to make to the public. b. What is the value of
the money multiplier? [Money Multiplier =...
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...
I am not sure how to answer question 1d and e as well as
question 2
YesBank has the following items on its balance sheet 1. 150 75 100 250 100 50 25 25 45 loans to corporations loans to households YesBank's holdings of shares and bonds, etc retail current account deposits (deposits by general public with YesBank) commercial current account deposits (deposits by companies with YesBank) tangible assets and property cash in vaults reserve deposits with Bank of England...
Question 3 A bank has the following assets and liabilities: Mortgage Loans: $240 million Consumer Loans: $250 million Discount Loans: $25 million Demand Deposits: $400 million NOW Deposits: $100 million Treasuries: $25 million Municipal Bonds: $10 million a) The bank has 10% in required reserves and 8% in excess reserves. Calculate the bank capital and show the balance sheet of the bank. b) Assume that net profits after taxes are $6 million. Calculate ROA, ROE, EM, leverage ratio, and capital...
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