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0 PROBLEMS AND APPLICATIONS(S0 marks) C15 marks) 190k, the CPt was 17.7 d the price ofa movie sicket was $0.25 c h 1943, he CPI was 17.4 and a gallon of gas cost $0.19 l Using sgphs, demonstrate wha happens to the money supply, money wtofnmy u d the price level İfas marks) a the Fed increases the money supply h peaple decide to demand less monry at each value of money The Fi Banik of Wabooton (10marks Table 1 The First Bank of Wabooton Assets Reserves $25,000 Loans 125,000 Deposits $150,000 able 1tb aces a reserve requirement of 10 percent, then the
bank a. is in a position to make a new loan of $15,000 b. has fewer reserves than are required c has excess reserves of $10,000 d. None of the above is correct 3.2 Refer to Table 1. If the bank faces a reserve requirement of 10 percent, then the bank is in a position to make a new loan of $10,000. b. has fewer reserves than are required c. has excess reserves of $12,500 d. None of the above is correct. 3.3.Refer to Table 1. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $50,000 into his account at the bank. If the bank takes no other action it will a. have $65,000 in excess reserves. b. have $55,000 in excess reserves. c. need to raise an additional $5,000 of reserves to meet the rese requirement d. None of the above is correct. 3.4. Refer to Table 1. If the bank faces a reserve requirement of 20 percent, the has $10,000 of excess reserves. a, b. needs S10,000 more reserves to meet its reserve requirements.
c needs $5,000 d. just meets its reserve requirement more reserves to meet its reserve requirements .S. Refer to Table 1 eserves, then the reserve requirement with which it must comply is If the First Bark of Wabooton is holding $4,000 in excess a 4 percent. b. 6 percent c. 12 percent d. 14 percent.
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on 3. j. ) hos exceh Reserve egense @ Nara ㅟtn 0ptien) sco uue et af wies Required Reserve → to. . Ecce Roseme ) since ha> moke 9tes eaue thoeeleore epten Since bouR can lead roma.nlヅ o. gt el now beiomeaseste Bau needu to maintain au addi pual os eome 3M 2Hence the correct option is (d) i.e., 14%.

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