Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Loanshark Bank's Balance sheet Reserve ratio 6% 500,000 Assets Liabilities Reserves 50,000 Demand Deposits Securities 30,000 Loans 420,000 Based on Loanshark's balance sheet what are

image text in transcribed
image text in transcribed
image text in transcribed
Loanshark Bank's Balance sheet Reserve ratio 6% 500,000 Assets Liabilities Reserves 50,000 Demand Deposits Securities 30,000 Loans 420,000 Based on Loanshark's balance sheet what are their actual reserves? O a $50,000 O b. $20,000 Oc. $30,000 O d. $500,000 Based on Loanshark's balance sheet what are their desired reserves? O a $20,000 O b. 50 O c. $30,000 O d. $50,000 Based on Loanshark's balance sheet, what are their excess reserves? O a. $50,000 O b. $30,000 O c. $0 O d. $20,000 Based on Loanshark's balance sheet, how much new money can they create? O a $50,000 O b. $20,000 O c. $30,000 Based on the information provided in the balance sheet and a reserve ratio of 6% what is the money multiplier (round to two decimal places) O a 10 O b. 16.67 O c. 12.33 O d. 6 Based on Loanshark's balance sheet, how much new money can the entire banking system create? O a. $50,000 O b. $20,000 O c. $500,000 O d. $334400 If the reserve ratio increased, what would be the effect on the amount of new money the banking system could create? O a. Increase Ob Decrease O c. No change would occur

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What are the attributes of a technical decision?

Answered: 1 week ago

Question

How do the two components of this theory work together?

Answered: 1 week ago