Amount Deposited = $ 5,000
Loan Sanctioned = $ 3,500
Total addition into reserve = $ 5,000 - 3,500 = $ 1,500
Change in Excess reserve = $ 500
Required Amount to be added to reserve = $ 1500 - 500 = $ 1000
Required reserve ratio
Reserve ratio = 20%
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Where in the diagram is the 3' end? NaORO NO OA) OB) ОС) OD) OE) Id. e.
Suppose the required reserve ratio is 10%, excess-to-deposit ratio is 10%, and the currency-to-deposit ratio is 20%. If the Fed buys $50 million worth of securities, what will happen to the money supply? 7.
Assuming 10% minimum required reserve ratio, 5% excess reserve ratio, and people holding 10% of cash received at home (not deposited in the banks), the money multiplier is equal to Select one: a. 0.05. b. 0.04. c. 5. d. 4.
OA (CF4) OB (CH20) Oc(N2O) OD (NH3) OE (CHC13) OF (NO2) Which molecules have a partial negative charge on a nitrogen atom?
answer these 4. will rate after Assume that the required reserve ratio is 20%. If the Federal Reserve buys $10 million worth of government bonds from the public, the maximum change in the money supply will be: more than 10 million. $2 million. O less than 10 million. o less than 2 million. Assume the reserve ratio is 25 percent and there are $40,000 in new deposits in the banking system. As a result, the money-creating potential of the commercial...
Bank A has $1.2 million in reserve and $10 million in deposit. The required reserve ratio is 10%. If bank A loses $200,000 in reserve, by what dollar amount is it reserve deficient?
(a). The required reserve ratio is 10%. If the Fed increases the amount of excess reserves in the banking system by $100,000,000, the maximum potential amount of additional money created in the economy will be ____ dollars. (b). The required reserve ratio is 10%, but due to economic uncertainty, banks are holding an additional 2.5% of their deposits as excess reserves. If the Fed increases the amount of excess reserves in the banking system by $100,000,000 through an open market...
IN What is the (H+) if the [OH-] = 7.1x10-8? OA) 7.1 x 10-8 OB) 6.85x10-7 OC) 7.15 OD) 6.85 OE) 1.4x107
why it is not required reserve devided by required reserve ratio? 19) What is the maximum amount a bank can lend? A) Its total assets. B) Its reserves divided by the required reserve ratio. C) The value of its check deposits times the required reserve ratio. D) Its excess reserves.
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...