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please answer all 1. Fill in the spaces for required reserves (2 spaces), deposits (2 spaces), and loans (3 spaces) for each bank. What is
please answer all
1.
- Fill in the spaces for required reserves (2 spaces), deposits (2 spaces), and loans (3 spaces) for each bank.
- What is the reserve ratio in this economy?
- What is the money multiplier in this country?
- What happens to the effectiveness of monetary policy if banks hold more reserves?
2. Is in the picture
1. Assume that all banks use the same reserve ratio, that the loans from the 1 National Bank become the deposits of the National Bank, and that the loans from the 2 National Bank become the deposits of the 3 National Bank +1 National Bank ASSETS Required reserves Loans $400 72 LIABILITIES Deposits $1,600 2nd National Bank ASSETS Required reserves Loans 27 77 LIABILITIES Deposits 72 3 National Bank ASSETS Required reserves Loans 72 77 LIABILITIES Deposits 72 a Pill in the spaces for required reserves (2 spaces), deposits (2 spaces), and loans (3 spaces) for each bank b. What is the reserve ratio In this economy What is the money multiplier in this country? d. What happens to the effectiveness of monetary policy if banks hold more reserves? 2. At the beginning of 2015, average stock prices (the Dow Jones Industrial Average) were around 17,800, median house prices were at $289,000; oil was selling at $49/barrel and gold was selling at $1,180/ounce. Five years later (January of this year), they were at 28,700 (DJIA), $327,000 (house prices) $64 (oil), and $1,500 (gold). Which of these four investments would have been the best choice for those five years? Show/Explain how you made your decision Investments Choices DJIA House Prices Oil Gold January 2015 $17,800 $327,000 $49 $1,180 January 2020 $28,700 $289,000 $64 $1,500Step by Step Solution
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