Excess reserves are affected by: 1. reserve requirements 2. the repayment of existing bank loans 3....
Excess reserves are affected by:
1. reserve requirements
2. the repayment of existing bank loans
3. cash withdrawals
a. 2 and 3
b. 1 and 2
c. 1 and 3
d. 1, 2, and 3
Homework Answers
Reserve requirements are majorly affected by the statutory reserve requirement, repayment of loans and cash withdrawals. So, all the options are correct.
Hence, correct option is d. 1, 2 and 3.
Add Answer to:
Excess reserves are affected by:
1. reserve requirements
2. the repayment of existing bank loans
3....
ommercial Bank has $5,000 in excess reserves, $90,000 in checkable deposit and the reserve ratio is...
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...
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....
Consider the following Bank balance sheet (assume Reserve Requirement Ratio is zero) Liabilities Assets Excess Reserves...
Consider the following Bank balance sheet (assume Reserve Requirement Ratio is zero) Liabilities Assets Excess Reserves +10M Deposits +100M Government Bonds £20M Loans Ł80M Bank Capital +10M a. Suppose interest rate on loans and government bonds is 10%, interest rate on deposits is 8%, and interest rate on excess reserves is 0%. What is the Bank's net return on assets? Compute the return on equity. b. Suppose the risk weights imposed by the bank regulator on loans, securities, and reserves...
Assets Liabilities Loans Deposits $65 million Required Reserves Excess Reserves $2 million Treasury Securities $5 million...
Assets Liabilities Loans Deposits $65 million Required Reserves Excess Reserves $2 million Treasury Securities $5 million 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. What is the value of the money multiplier? [Money Multiplier =...
- + Automatie Zoom : Exhibit 1: Bountiful Bank Assets Liabilities $400,000 Reserves Loans Deposits $...
- + Automatie Zoom : Exhibit 1: Bountiful Bank Assets Liabilities $400,000 Reserves Loans Deposits $ 50,000 $350,000 3. Use the balance sheet in Exhibit 1. Suppose the reserve requirement for this bank, Bountiful Bank, is 10 percent. Which of the following statements is (are) correct? (x) Given its current reserves amount, Bountiful Bank is in a position to make a new loan of $10,000 (y) Bountiful Bank has excess reserves in an amount that is more than $9,500 (z)...
61 Suppose the required reserve ratio is 40% and all banks do not hold excess reserves....
61 Suppose the required reserve ratio is 40% and all banks do not hold excess reserves. I Michael deposits S2000 cash in his current account (1) the money supply MI will immediately decrease by $2.000 (2) the maximum increase in bank deposits will be SS 000 (3) the maximum increase in bank loans will be 52 000 A. (1) only B. (2) only c. (1) and (2) only D. (1), (2) and (3) 11 the ability of deposit creation of...
1. Suppose a bank has a 5 percent reserve ratio, $10,000 in deposits, and it loans...
1. Suppose a bank has a 5 percent reserve ratio, $10,000 in deposits, and it loans out all it can, given the reserve ratio. Which of the following is correct_ _? A. It has $50 in reserves and S9950 in loans. B. It has $500 in reserves and $9500 in loans. C. It has $555 in reserves and S9445 in loans. D. It has S559 in reserves and S9445 in loans. 10. Considering a recession may happen next year. Commercial...
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...
excess reserves are equal to Excess reserves are equal to: S a . total reserves minus...
excess reserves are equal to
Excess reserves are equal to: S a . total reserves minus required reserves. b. required reserves minus loans. c. total reserves minus loans. d. total reserves plus required reserves. e. total reserves multiplied by required reserves. When do we say that a bank is loaned up? a. When its debtors don't want to repay b. When it is susceptible to a bank panic c. When its excess reserves equal zero d. When its required reserves...
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...
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...
Consider the following Bank balance sheet (assume Reserve Requirement Ratio is zero) Liabilities Assets Excess Reserves +10M Deposits +100M Government Bonds £20M Loans Ł80M Bank Capital +10M a. Suppose interest rate on loans and government bonds is 10%, interest rate on deposits is 8%, and interest rate on excess reserves is 0%. What is the Bank's net return on assets? Compute the return on equity. b. Suppose the risk weights imposed by the bank regulator on loans, securities, and reserves...
- + Automatie Zoom : Exhibit 1: Bountiful Bank Assets Liabilities $400,000 Reserves Loans Deposits $ 50,000 $350,000 3. Use the balance sheet in Exhibit 1. Suppose the reserve requirement for this bank, Bountiful Bank, is 10 percent. Which of the following statements is (are) correct? (x) Given its current reserves amount, Bountiful Bank is in a position to make a new loan of $10,000 (y) Bountiful Bank has excess reserves in an amount that is more than $9,500 (z)...
61 Suppose the required reserve ratio is 40% and all banks do not hold excess reserves. I Michael deposits S2000 cash in his current account (1) the money supply MI will immediately decrease by $2.000 (2) the maximum increase in bank deposits will be SS 000 (3) the maximum increase in bank loans will be 52 000 A. (1) only B. (2) only c. (1) and (2) only D. (1), (2) and (3) 11 the ability of deposit creation of...
1. Suppose a bank has a 5 percent reserve ratio, $10,000 in deposits, and it loans out all it can, given the reserve ratio. Which of the following is correct_ _? A. It has $50 in reserves and S9950 in loans. B. It has $500 in reserves and $9500 in loans. C. It has $555 in reserves and S9445 in loans. D. It has S559 in reserves and S9445 in loans. 10. Considering a recession may happen next year. Commercial...
excess reserves are equal to
Excess reserves are equal to: S a . total reserves minus required reserves. b. required reserves minus loans. c. total reserves minus loans. d. total reserves plus required reserves. e. total reserves multiplied by required reserves. When do we say that a bank is loaned up? a. When its debtors don't want to repay b. When it is susceptible to a bank panic c. When its excess reserves equal zero d. When its required reserves...
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...
Most questions answered within 3 hours.
-
Company A is assigned $200,000 of goodwill arising from a recent
business combination. The current carrying...
asked 1 minute ago -
Write any individual Class A IP address below. It cannot be
non-routable address. Include the subnet...
asked 1 minute ago -
Coronado Industries had January 1 inventory of $301000 when it
adopted dollar-value LIFO. During the year,...
asked 11 minutes ago -
The cable supporting a 2145-kg elevator has a maximum strength
of 2.18×104 N.
a) What maximum...
asked 21 minutes ago -
Find the critical value(s) and rejection region(s) for a
two-tailed chi-square test with a sample size...
asked 25 minutes ago -
One of your experts gave me an answer of $7.36 but there are
many different answers...
asked 31 minutes ago -
Petrus Framing's cost formula for its supplies cost is $1,790
per month plus $10 per frame....
asked 43 minutes ago -
Introduction
Information design is a field that studies the way information
should be displayed, which is...
asked 40 minutes ago -
1.The main product of the reaction between p-cresol and Br2 /
FeBr3 is:
3-Bromo-4-methyl phenol
2-Bromo-4-methyl...
asked 45 minutes ago -
At present, concentration
of 92235U in naturally
occurring uranium deposits is approximately 0.74 %. What will the...
asked 48 minutes ago -
Question 1:
For the following reaction, 8.72 grams of nitrogen gas are
allowed to react with...
asked 50 minutes ago -
Discuss the benefits and detriments of hard water, and your
opinion on using water softeners.
asked 1 hour ago