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PLEASE review answered questions and help me fill in additional blanks in graphs or questions that are still needed. NO EXPLANATION NEEDED... just response to
PLEASE review answered questions and help me fill in additional blanks in graphs or questions that are still needed. NO EXPLANATION NEEDED... just response to question. Thanks!
@ ezto.mheducation.com M Question 8 - Chapter 36 Homework - Connect Chapter 36 Homework Saved Help Save & Exit Submit 3 Instructions: Enter your answers as a whole number. Place your answers in the gray-shaded cells using both tables below. Consolidated Balance Sheet: All Commercial Banks 769 points Assets: Reserves $40 Securities 60 e% K Loans 102 Liabilities and net worth: & Checkable deposits 200 tint Loans from the Federal Reserve Banks 2 References Consolidated Balance Sheet: 12 Federal Reserve Banks [ A | B c Assets: Securities $ 283 Loans to commercial banks 2 Liabilities and net worth: Reserves of commercial banks 40 Treasury deposits 5 Federal Reserve Notes 225 Other liabilities and net worth 15 % @ ezto.mheducation.com M Question 10 - Chapter 36 Homework - Connect Chapter 36 Homework @ 10 769 points References In the tables that follow you will find consolidated balance sheets for the commercial banking system and the 12 Federal Reserve Banks. Use columns 1through 3 to indicate how the balance sheets would read after each of transactions a to cis completed. Do not cumulate your answers; that is, analyze each transaction separately, starting in each case from the numbers provided. All accounts are in billions of dollars. Instructions: Enter your answers as a whole number. Consolidated Balance Sheet: All Commercial Banks Assets: Reserves Securities Loans Liabilities and net worth: Checkable deposits Loans from the Federal Reserve Banks Assets: Securities Loans to commercial banks Liabilities and net worth: Reserves of commercial banks Treasury deposits Federal Reserve Notes Saved @ ezto.mheducation.com M Question 10 - Chapter 36 Homework - Connect a. A decline in the discount rate prompts commercial banks to borrow an additional $2 billion from the Federal Reserve Banks. Show the new balance sheet numbers in column 1 of each table. b. The Federal Reserve Banks sell $4 billion in securities to members of the public, who pay for the bonds with checks. Show the new balance sheet numbers in column 2 of each table. c. The Federal Reserve Banks buy $3 billion of securities from commercial banks. Show the new balance sheet numbers in column 3 of each table. d. Now review each of the above three transactions, asking yourself these three questions: (1) What change, if any, took place in the money supply as a direct and immediate result of each transaction? (2) What increase or decrease in the commercial banks' reserves took place in each transaction? (3) Assuming a reserve ratio of 20 percent, what change in the money-creating potential of the commercial banking system occurred as a result of each transaction? Transaction a: (1) The money supply | did not change 4. (2) Reserves | (Click to select) % |from $34 billion to $ :| billion. (3) The money-creating potential | (Click to select) %|by $ :' billion. Transaction b: (1) The money supply [ (Click to select) 4|by$ :] billion. (2) Reserves | (Click to select) #|from $34 billion to $ : billion. (3) The money-creating potential | (Click to select) 4|by $ l:l billion. Transaction (1) The money supply | (Click to select) %]. (2) Reserves [ (Click to select) 4 |from $34 billion to $ |:| billion. (3) The money-creating potential | (Click to select) %|by $ :I billion. @ ezto.mheducation.com aw-Hill Connect M Question 11 - Chapter 36 Homework - Connect Problem 36-07 (algo) 769 Refer to the table for Moola below to answer the following questions. points Investment Skipped at Interest Actual Real GDP Money Money Interest (Rate Potential |at Interest (Rate u Supply Demand Rate Shown) Real GDP Shown) Book $ 500 $ 800 $ 350 70 & 600 4 60 350 Print 500 5 50 350 References Instructions: Enter your answers as a whole number. a. What is the equilibrium interest rate in Moola? b. What is the level of investment at the equilibrium interest rate? s c. Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and, if either, what is the amount? (Click to select) 4lof$ |:| d. Given money demand, by how much would the Moola central bank need to change the money supply to close the output gap? (Click to select) #|the money supply by $ |:| e. What is the expenditure multiplier in Moola? @ ezto.mheducation.com M Question 12 - Chapter 36 Homework - Connect Chapter 36 Homework 12 769 points o eB;ok - Print D References Connect Problem CP 36-09 (algo) The Federal Reserve wants to increase the money supply by increasing the lending potential of commercial banks by $320 billion. It plans to use open-market operations to accomplish this goal. The current reserve requirement for commercial banks is 5 percent. Instructions: Enter your answer as a whole number. a. Will the Fed want to buy or sell government securities if sales or purchases of government securities are the only instrument used in the open-market operations? The Fed will want to atotal of $ :l billion in government securities. b. What other option could the Fed pursuerather than permanently transferring the ownership of securitiesto achieve its goal? The Fed could use some amount of | repos 4 | to effectively | lend money to 4 | commercial banks SavedStep by Step Solution
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