Question
16 Suppose the Federal Reserve increases deposits at financial institutions by $77 billion through its open market operations. If the reserve requirement for all deposits
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Suppose the Federal Reserve increases deposits at financial institutions by $77 billion through its open market operations. If the reserve requirement for all deposits is 8%, what is the maximum impact the Fed's actions can have on total deposits?
$____________ billion increase.
(Your answer should be entered as a NUMBER ONLY, rounded to one decimal place).
2 points
QUESTION 17-
A small state bank currently has reserves equal to $550,000. If the state reserve requirement is 20%, but the bank feels more comfortable with maintaining a 30% reserve, what amount of deposits does the bank currently have? (Note: Enter your number using ONLY numbers and round to the nearest whole dollar).
2 points
QUESTION 18-
Suppose the reserve requirement for transaction deposits is 10% and it is 5% for nontransaction deposits. What is the total reserve requirement, in millions, for a bank with total deposits equal to $500 million, if $100 million of these deposits are classified as transaction deposits? (NOTE: Enter your answer as numbers only and round to the nearest whole dollar). Example - if your answer is $72 million, simply enter the number 72
2 points
QUESTION 19-
Suppose the Federal Reserve increases deposits at financial institutions by $90 billion through its open market operations. If the reserve requirement for all deposits is increased from 8% to 10% at the same time the Fed increases deposits, what is the maximum impact the Fed's actions can have on total deposits? Round your answer to the nearest billion. (Note: Enter only the number, in billions, of the increase. Example: If your calculated number is $300 billion, simply enter the number 300).
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