Question
Question 7 Balance sheet of Bank National Assets Liabilities Vault Cash Deposit in Fed Loans Total Assets $1,500 $ 500 $4,000 $6,000 Deposits Total Liabilities
Question 7
-
Balance sheet of Bank National
Assets
Liabilities
Vault Cash
Deposit in Fed
Loans
Total Assets
$1,500
$ 500
$4,000
$6,000
Deposits
Total Liabilities
$6,000
$6,000
If r = 10%, how much can the whole banking system expand the money supply?
a. $20,000
b. $54,000
c. $40,000
d. $11,000
e. $5,000
Balance sheet of Bank National | |||
Assets | Liabilities | ||
Vault Cash Deposit in Fed Loans
Total Assets | $1,500 $ 500 $4,000
$6,000 | Deposits
Total Liabilities | $6,000
$6,000 |
If the Fed changed the reserve requirement from 10% to 5% - the banks Excess Reserves (ER) would:
a. | Increase by $300 | |
b. | Increase by $1,700
| |
c. | Decrease by $1,400
| |
d. | Increase by $2,000
| |
e. | Increase by $5,700
|
Question 9
-
Balance sheet of Bank National
Assets
Liabilities
Vault Cash
Deposit in Fed
Loans
Total Assets
$1,500
$ 500
$4,000
$6,000
Deposits
Total Liabilities
$6,000
$6,000
If the Fed changed the reserve requirement from 10% to 25% the money supply (MS) in the whole banking system could:
a. Decrease by $18,000
b. Decrease by $54,000
c. Increase by $18,000
d. Decreases by $36,000
e. Increase by $36,000
Question 9
-
Balance sheet of Bank National
Assets
Liabilities
Vault Cash
Deposit in Fed
Loans
Total Assets
$1,500
$ 500
$4,000
$6,000
Deposits
Total Liabilities
$6,000
$6,000
If the Fed changed the reserve requirement from 10% to 25% the money supply (MS) in the whole banking system could:
a. Decrease by $18,000
b. Decrease by $54,000
c. Increase by $18,000
d. Decreases by $36,000
e. Increase by $36,000
Question 10
-
Balance sheet of Bank National
Assets
Liabilities
Vault Cash
Deposit in Fed
Loans
Total Assets
$1,500
$ 500
$4,000
$6,000
Deposits
Total Liabilities
$6,000
$6,000
If the Fed changed the reserve requirement from 10% to 39% Bank National would now have ER of:
a. -$340
b. -$3,660
c. -$2,340
d. -$500
e. -$250
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