If the required reserve ratio is 10%, how much of a new $10,000 deposit can a bank
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (17 reviews)
The bank must retain 10000 10 or 1000 of the new deposit Th...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
Question Posted:
Students also viewed these Finance questions
-
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the excess reserves-checkable...
-
If the required reserve ratio is 10 percent, calculate the potential change in demand deposits under the following circumstances: a. You take $5,000 from under your mattress and deposit it in your...
-
The required reserve ratio is 10 percent, a bank has checkable deposits of $200 million and excess reserves of $100 million. Assuming the bank is meeting its reserve requirement, what amount is the...
-
Jake Drewrey has total fixed monthly expenses of $ 1,340 and his gross monthly income is $3,875. What is his debt-to-income ratio? How does his ratio compare to the desired ratio?
-
If L is a linear transformation from V to IV, use mathematical induction to prove that L(a1v1 + a2v2 +...... + anvn) = a1L(V2) + a2L(v2) +.......+ anL(vn)
-
Is sharing information worth the risk of revealing important information to competitors?
-
Refer to the Federal Trade Commission (FTC) 1998 "Price Check" study of electronic checkout scanners, Exercise 4.30 (p. 192). The FTC inspected 1,669 scanners at retail stores and supermarkets by...
-
Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land,...
-
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par...
-
Project Alpha has two phases. You may invest in the first, in both, or in neither. The first phase requires an investment of $100 today. One year later, Alpha will deliver either $120 or $80, with...
-
The short-term nominal interest rate is 5%, with an expected inflation of 2%. Economists forecast that next years nominal rate will increase by 100 basis points, but inflation will fall to 1.5%. What...
-
A bank currently holds $150,000 in excess reserves. If the current reserve requirement is 12.5%, how much could the money supply change? How could this happen?
-
What is a trial balance and what is its purpose? Why doesn't a trial balance guarantee that your accounting is "correct"?
-
Are there more children diagnosed with Autism Spectrum Disorder (ASD) in states that have larger urban areas over states that are mostly rural? In the state of Pennsylvania, a fairly urban state,...
-
Problem PS9.2.4 0/5 points (graded)Suppose that in this economy all the funds for capital come from savings by the 10 individuals. Firms' demand for capital is given by QD=100100r . What is the...
-
As Renata explained her frustration with a coworker to the human resource manager, the manager quickly averted her eyes and began shuffling papers on her desk. Renata immediately felt uncomfortable....
-
Confidential counselling for mental health issues is available through the organization's: Multiple Choice group insurance plan workers' Compensation plan preventive care program employee recognition...
-
ABC Credit Finance is a credit card provider with regional payment processing centers. You are a manager of one of these centers. You are an at-will employee in a typical at-will jurisdiction. ABC is...
-
What three provisions are common to almost every management contract?
-
The following cost information was provided to you for analysis: September 12,000 Units Produced Costs: TIC TAC TOE TING August 10,000 P80,000 70.000 60.000 50,000 How much is the fixed cost per...
-
True Or False Tort law and criminal law share the same purpose and historical derivations.
-
What is the difference between a discount yield and a bond equivalent yield? Which yield is used for Treasury bill quotes?
-
Why can discount yields not generally be compared to yields on other (nondiscount) securities?
-
Describe the T-bill auction process.
-
Year-to-date, Yum Brands had earned a 3.70 percent return. During the same time period, Raytheon earned 4.58 percent and Coca-Cola earned 0.53 percent. If you have a portfolio made up of 40 percent...
-
Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .15 .31 .41 .21 Good .60 .16 .12 .10 Poor .20 .03 .06 .04 Bust .05 .11 .16 .08 a. Your...
-
An investor wants to purchase a zero coupon bond from Timberlake Industries today. The bond will mature in exactly 5.00 years with a redemption value of $1,000. The investor wants a 12.00% annual...
Study smarter with the SolutionInn App