Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that JPMorgan Chase sells $200 milion in Treasury bels to the Fed. a. Use T-acooumts to show the immedate impact of this sale on

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Suppose that JPMorgan Chase sells $200 milion in Treasury bels to the Fed. a. Use T-acooumts to show the immedate impact of this sale on the balance sheess of JPMorgan Chate and the Fed. (Entor your responses as integers. inelude a minus sign to indicate a negative change. but do not inctude a plus sign for a positive change) b. Suppose that before seling the Treasury bils, JPMorgan Chase had no axcess resecves. Suppose that the mequred resorve rafe is 20% Suppose that JPMorgan Chase makes the maximum loan it can from the funds acquired by seling the Treasury bits. Assume that the loan was made to a JP Morgan Chase customer and deposted into his of her accound Use a T-acrourt to ahow the initial impact of grgating the loan on JPMorgan Chase's balance sheet. (Enter your responsos as integera. inchude a meus agn to indicate a negative change, but do not inchide a plun sign for a positive ehange, ) c. Now sugpese that whoever took out Bhe loan in part (b) wribs a check for ins amount and that the person receiving the check deposis in in Wols Farpo Bark, Shew the effect of these do not inciude a plus lign for a posilve change.) b. Suppose that bofore seling the Treasury bels, JPMorgan Chase had no oxcess roserves. Suppose that the required reserve ratio is 20% Suppose Gat JPMtorgan Chase makes the makimum ban it can from the funds acquired by selling the Treasury bils. Assume that the loan was made to a JP Morgan Chase customer and deposited moto his or her aceouat Use a T-ackevat io show the initial impact of granting the loan on JPMorgan Chasers balance sheet. (Enter your nesponses as integers. include a minus aign to indicate a negative change, but do nol include a phis bign for a positive changen) c. New suppose that whoever took eut the loan in part (b) wrtes a check for this amount and that the perach receiveng the check deposits an Weis Farpo flank shew the ettect of these do nat indide a plus sigr for a positive change) d. If currency in circudaton a $400 bilion, totat reserves of the banking syslem are 5000 blion, and total checkable deposith are 52,100 bllion, what is the maximum increase in the moner supply is opeosed to the aimple deposit mulspler, in thet calcuiaton The incruase in the money susply is malion. (Enter your mupense as an integer) uppose that JPMorgan Chase sels $200 mallion in Treasury bils to the Fed. Use T-accounts to show the immediate impact of this saie on the balance sheels of JPMorgan Chase and the Fed. (Entor your rosponses as integers. Include a minus sign to indicate a egative change, but do not indude a plus sign for a positive change.) b. 5 uppose that before seling the Treasury bilk, JPMorgan Chase had no excess meserves suppose that the roquied reserve ratio is 20% suppose that upMforpan Crase makes Fhe maximum oan it can from the funds acquired by seling the Treasury bilis. Assume that the loan was made to a JP Mergan Chase customer and deposied indo his or hier account. Use a T.acoount io show the postive chanioe ) c. Now suppose that whoever took out the loan in part (b) writes a check for this amount and that the person receivng the check deposts it in Wels Farge Elank. Show the effect of these do not inciude a plis aign far a posibve change) as opposed to the simpie deposit mulipter, in the calkilation. The increase in the money wupply is 5 mition (Enter yout maspanse as an integer) Suppose that JPMorgan Chase sells $200 milion in Treasury bels to the Fed. a. Use T-acooumts to show the immedate impact of this sale on the balance sheess of JPMorgan Chate and the Fed. (Entor your responses as integers. inelude a minus sign to indicate a negative change. but do not inctude a plus sign for a positive change) b. Suppose that before seling the Treasury bils, JPMorgan Chase had no axcess resecves. Suppose that the mequred resorve rafe is 20% Suppose that JPMorgan Chase makes the maximum loan it can from the funds acquired by seling the Treasury bits. Assume that the loan was made to a JP Morgan Chase customer and deposted into his of her accound Use a T-acrourt to ahow the initial impact of grgating the loan on JPMorgan Chase's balance sheet. (Enter your responsos as integera. inchude a meus agn to indicate a negative change, but do not inchide a plun sign for a positive ehange, ) c. Now sugpese that whoever took out Bhe loan in part (b) wribs a check for ins amount and that the person receiving the check deposis in in Wols Farpo Bark, Shew the effect of these do not inciude a plus lign for a posilve change.) b. Suppose that bofore seling the Treasury bels, JPMorgan Chase had no oxcess roserves. Suppose that the required reserve ratio is 20% Suppose Gat JPMtorgan Chase makes the makimum ban it can from the funds acquired by selling the Treasury bils. Assume that the loan was made to a JP Morgan Chase customer and deposited moto his or her aceouat Use a T-ackevat io show the initial impact of granting the loan on JPMorgan Chasers balance sheet. (Enter your nesponses as integers. include a minus aign to indicate a negative change, but do nol include a phis bign for a positive changen) c. New suppose that whoever took eut the loan in part (b) wrtes a check for this amount and that the perach receiveng the check deposits an Weis Farpo flank shew the ettect of these do nat indide a plus sigr for a positive change) d. If currency in circudaton a $400 bilion, totat reserves of the banking syslem are 5000 blion, and total checkable deposith are 52,100 bllion, what is the maximum increase in the moner supply is opeosed to the aimple deposit mulspler, in thet calcuiaton The incruase in the money susply is malion. (Enter your mupense as an integer) uppose that JPMorgan Chase sels $200 mallion in Treasury bils to the Fed. Use T-accounts to show the immediate impact of this saie on the balance sheels of JPMorgan Chase and the Fed. (Entor your rosponses as integers. Include a minus sign to indicate a egative change, but do not indude a plus sign for a positive change.) b. 5 uppose that before seling the Treasury bilk, JPMorgan Chase had no excess meserves suppose that the roquied reserve ratio is 20% suppose that upMforpan Crase makes Fhe maximum oan it can from the funds acquired by seling the Treasury bilis. Assume that the loan was made to a JP Mergan Chase customer and deposied indo his or hier account. Use a T.acoount io show the postive chanioe ) c. Now suppose that whoever took out the loan in part (b) writes a check for this amount and that the person receivng the check deposts it in Wels Farge Elank. Show the effect of these do not inciude a plis aign far a posibve change) as opposed to the simpie deposit mulipter, in the calkilation. The increase in the money wupply is 5 mition (Enter yout maspanse as an integer)

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

Accounting For Construction Frameworks Productivity Cost And Performance

Authors: Rick Best, Jim Meikle

1st Edition

1138293970, 978-1138293977

More Books

Students also viewed these Accounting questions

Question

How are most students funded?

Answered: 1 week ago

Question

What proactive strategies might you develop?

Answered: 1 week ago

Question

How does your message use verbal communication?

Answered: 1 week ago