Your bank has the following balance sheet: Assets Liabilites Reserves $50 million Checkable Deposits $200 million Securites $50 million Bank Capital $50 million Loans $150 million If the required reserve ratio is 10%, what possible actions can the bank manager take if there is an unexpected deposit outflow of $50 million?
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Your bank has the following balance sheet:
Assets | Liabilites | ||
Reserves | $50 million | Checkable Deposits | $200 million |
Securites | $50 million | Bank Capital | $50 million |
Loans | $150 million |
If the
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- John deposits $1,800 into his checking account. If the reserve ratio is 10%, what are the required and excess reserves? Required reserves: $[ Excess reserve erves: $A bank has outstanding loans of $7,500, reserves of $2,500, and deposit liabilities of $10,000. If the required reserve ratio is 10%, this bank: A. Is holding excess reserves of $1,000 B. Is in a position to make a new loan for $1,500 C. Is in a position to make a new loan for $2,500 D. Has less reserves than requiredIf you deposit $40 into a checking account, and your bank has a 10% reserve requirement, the bank's excess reserves will rise by $
- When you open a checking account at Bank of America, Bank of America has more reserves and more excess reserves. has more reserves, but excess reserves remain unchanged. has more deposits and less in excess reserves. has more deposits, but excess reserves remain unchanged.Mr. Bill Smith lives in Dayton Ohio and always deposits money into a checking account in a bank nearby. Please calculate the money creation in the U.S. banking system with required reserve ratio at 0.25 in each of the following cases: (a) Bill’s parents wired him $100,000 from Germany. (b) Bill won $100,000 cash from a casino in another state. (c) Bill found $100,000 worth of collectable coins underground at his house. (d) Bill got a $100,000 check which is issued in a U.S. bank from his aunt as gift.Suppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently set at 5%. Sean, a Southeast Mutual Bank customer, deposits $200,000 into his checking account at the local branch.Change in Required Reserves(Dollars)
- Required reserves with a bank equal A) Total reserves plus excess reserves B) Excess reserves minus demand deposits C) Total reserves minues excess reserves D) Demand deposits plus savings accountThe commercial banking system has excess reserves of $3,000. Then new loans of $40,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be ___%If a customer came into the bank to withdraw more from their demand deposits than the bank currently has on hand in vault cash, what are the sources for getting the cash to cover the withdraws(Check ALL That Apply)? Print New Money Borrow from another Bank Borrow from the Federal Reserve Convert(Liquidate) Loans
- Calculate Total Potential Deposit Creation given the following information. rr = ,12 Total Deposits: $6300 Total Reserves: $5500 Instructions: Please calculate to two decimal points. The margin of error is 0.10. do not use the $ sign in your answerInitial deposit is $10,000 Required Reserve Ratio is 10% Calculate: $ Multiplier Required Reserves Excess Reserves Potential $ CreatedIf $2,000 is withdrawn from the bank by a customer, the bank's Assets and liabilities decrease Assets rise Liabilities decrease and assets rise Assets decrease and liabilities rise