Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Legal reserve of a commercial bank A consists of cash in vault and deposits in the central bank. A question requiring a 'True/False' answer.(Required)
1. Legal reserve of a commercial bank A consists of cash in vault and deposits in the central bank. A question requiring a 'True/False' answer.(Required) O True O False 2. Required reserve can be used to make loans, purchase securities. A question requiring a 'True/False' answer.(Required) O True O False 3. An individual bank can create a multiple amount of deposit money from any given injection of reserves by using its excess reserve to make loans. A question requiring a 'True/False' answer.(Required) O True O False 4.If the Fed set the required reserve requirement ratio to be 0.02, bank A wishes to maintain 0.03 dollar in excess reserve for every 1 dollars in transaction deposit. What is the deposit multiplier? (Required) If bank A found themselves with 10 in excess reserve, what is the maximum amount of new deposits (loan) created by the banking system? (Required) 5. If you withdraw money from your bank, it will reduce loans and deposits in the whole banking system. A question requiring a 'True/False' answer.(Required) O True O False 6. Monetary base is the money supplied by all the private banks. A question requiring a 'True/False' answer.(Required) O True O False 7. Open market operations can change monetary supply but cannot change monetary base. A question requiring a 'True/False' answer.(Required) O True O False (Required) 8. The monetary base represent the of central bank. 9. Why Japanese government cannot achieve 2% inflation target even through the expansionary monetary? (Approximately 100 words) (Required) 0 words
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started