Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with questions 6 through 10. Thank you Use this protocol for your answers: Use a $ for all dollar values. Round off all

image text in transcribed

Need help with questions 6 through 10. Thank you

Use this protocol for your answers: Use a $ for all dollar values. Round off all dollar values to the nearest whole number. For negative numbers, put a "-" in front of the $ sign. Use a comma for all dollar values in excess of +$999. Express ratios with a "%" sign. Consider the following bank balance sheet (i.e., for a country with only one bank). The required reserve ratio is 12.5% and the currency ratio is 15%. All deposits are demand deposits. Use this information to answer the questions below. Liabilities $215,000 Deposits Assets Reserves RR Des. ER Undes. ER Loans $31,650 ??? $7,525 ??? $183,350 10 questions @ 1 point for 10 points total. 1. The level of currency in circulation is: 2. The level of the monetary base is: 3. The level of the M1 measure of the money supply is: 4. The desired excess reserve ratio, to one decimal place, is: 5. The level of required reserves is: 6. The level of undesired excess reserves is: 7. The money multiplier, m*, to 2 decimal places, is 8. To achieve equilibrium, the money supply will have to change by 9. At equilibrium, the level of the money supply will be 10. At equilibrium, level of undesired excess reserves will be [Write "positive" or "negative" or "zero" or "it cannot be determined" don't use any punctuation, no capitalization, no extra spaces.] Use this protocol for your answers: Use a $ for all dollar values. Round off all dollar values to the nearest whole number. For negative numbers, put a "-" in front of the $ sign. Use a comma for all dollar values in excess of +$999. Express ratios with a "%" sign. Consider the following bank balance sheet (i.e., for a country with only one bank). The required reserve ratio is 12.5% and the currency ratio is 15%. All deposits are demand deposits. Use this information to answer the questions below. Liabilities $215,000 Deposits Assets Reserves RR Des. ER Undes. ER Loans $31,650 ??? $7,525 ??? $183,350 10 questions @ 1 point for 10 points total. 1. The level of currency in circulation is: 2. The level of the monetary base is: 3. The level of the M1 measure of the money supply is: 4. The desired excess reserve ratio, to one decimal place, is: 5. The level of required reserves is: 6. The level of undesired excess reserves is: 7. The money multiplier, m*, to 2 decimal places, is 8. To achieve equilibrium, the money supply will have to change by 9. At equilibrium, the level of the money supply will be 10. At equilibrium, level of undesired excess reserves will be [Write "positive" or "negative" or "zero" or "it cannot be determined" don't use any punctuation, no capitalization, no extra spaces.]

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

Internal Auditing In Plain English A Simple Guide To Super Effective ISO Audits

Authors: Craig Cochran

1st Edition

1932828168, 978-1932828160

More Books

Students also viewed these Accounting questions