Question
1). If the required reserve ratio is 10%, how much money can this bank create? 2). The required reserve ratio is 10%. if the bank
1). If the required reserve ratio is 10%, how much money can this bank create?
2). The required reserve ratio is 10%. if the bank makes a loan of the maximum amount possible, how much will be in excess reserves immediately after the loan is made--before it is spent.
3). The required reserve ratio is 10%. if this bank makes a loan of the maximum amount possible, what is the maximum amount of additional lending possible in the banking system?
4). The required reserve ratio is 10%. If the federal reserve sells securities to this bank, what is the maximum amount of securities it could sell?
5). The reserve requirement is 10%. Suppose Klaus finds $1000 cash stashed in his exoskeleton and deposits at the bank who is T account is shown below. By how much will the M1 money supply change immediately after Klaus' deposit?
6). The reserve requirement is 10%. Suppose that Klaus receives $1000 from the sale of a bond to the federal reserve. Klaus deposits it at the bank whose T account is shown below. By how much will the M1 money supply change immediately after Klaus's deposit?
7). The reserve requirement is 10%. Suppose Silas anticipates that his pick up will need an expensive repair and withdraws $1000 from his checking account from the bank whose T account appears below. By how much do the banks reserves change after the withdrawal?
8). The reserve requirement is 10%. The stockholders equity remains unchanged, but liabilities and net worth increase by $20,000. What must happen to assets?
9). The reserve requirement is 10%. Suppose that the bank whose T account is shown below is uncharacteristically cautious and holds back an extra 5% of its reserves. Suppose it lends the amount that fits its acceptable level of risk, by how much can real GDP change after all rounds of spending?
If the required reserve ratio is 10 percent, how much money can this bank create? Reserves Loans Securities Property Total Assets Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 $76,000 Total Liabilities and Net Worth $70,000 $6,000 $76,000
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1 The required reserve ratio is the percentage of total deposits that a bank is required to hold in its reserve account in order to cover its liabilities and maintain a healthy balance sheet In this c...Get Instant Access to Expert-Tailored Solutions
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