If a bank has total deposits of $7,200 and reserves of $1,600: Instructions: Round to the nearest whole number. (a) What is its current reserve ratio? % (b) How large is its loan portfolio (outstanding loans)?
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A: Assets are equal to liabilities in a bank's T account.
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A:
Q: Bank A has checkable deposits of $10 million and total reserves of $1 million. The required reserve…
A: Bank's required reserves= 9% of $10 million= $900,000 The reserves bank has= $1 million
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A: Excess reserves are the deposits which is above the required deposits level.
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Q: Joy, a manager of MillerBank, receives a demand deposit of $100 and her excess reserve increased by…
A: Total deposits = $100 excess reserve increased = $80 Thus, required reserves = $100-$80 = $20
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A: Bank capital shows the net worth of any bank by checking the bank's assets and liabilities.
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A: Liabilities means that a person or company is owing something , usually money. Deposit accounts…
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A: Excess reserves are the additional funds that are held by the financial institutions such as banks…
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A: Deposited amount is $500 and rr=10%
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A: Given Required Reserve Ratio = 8% or 0.08
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A: Increase in money supply:Increase in money supply can be calculated as follows:
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A: The total increase in deposits = Initial deposit * Money multiplier
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A: Required reserve ratio is the minimum requirement that a bank needs to hold as reserves.
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A: Given: Deposits = $2 million Reserves = $250,000 Required Reserve Ratio = 10%
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A: The required reserve is the minimum cash the bank can keep on hand. The excess reserve is any cash…
Q: Distinguish between legally required reserves and excess reserves.
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A: Total deposit = $6000000 reserves = $1200000
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A: We have required reserve ratio = RRR = 0.25 and cash deposit = 2000
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A: The value of the money multiplier is calculated on the basis of the percentage of the reserve…
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A: When an individual puts his deposit into hie bank account, his money is further used by bank as an…
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- What would be the first loan in the table if the reserve ratio is 10%? A/Loans 800, total Deposit 800 B/ Loans 1000, total Deposit 1000 C/ Loans 900, total Deposit 1900 D/ Loans 1000, total Deposit 2000Assume that Atlantic National Bank has demand deposits of $100,000 and no excess reserves, and that the reserve requirement is 10 percent. A customer withdraws $5,000 from the bank. To meet the reserve requirement, the bank must increase its reserves by (A) $500 (B) $1,000 (C) $2,000 (D) $4,000 E $4,500True or False 2. The Fed uses the monetary policy tool of open market operations to affect interest rates. Type out the correct answer within 40 min with proper explanation of it. Will give you thumbs up only for the correct answer. Thank you
- 2-A bank has deposits of $ 6 000 000 , its total actual reserves are $1 200 000 and the legal reserve ratio is 0.12 . (a) What is the amount of reserves ? (b) What is the amount of excess reserves ? (c) If the reserve ratio changes to 0.10 what would be the effect on reserves and total actual reserves ,amount of excess reserves remaining the same ?If the required reserve ratio is 5%, how much can this bank lend? A) 400,000 B) 600,000 C) 750,000 D) 800,000 E) 900,000It is a form of guarantee given by a reputable bank. If the borrower defaults in paying, the investor has legal recourse to the bank. a. Repurchase agreement b. Banker acceptance c. Certificate of deposit d. Commercial paper
- (a) Suppose a bank held $10 million in treasury securities, and their value fell to $9.7 million. What is the effect on bank capital? (b) Suppose a bank pays $1 million in deposits out of reserves. What is the effect on bankcapital? (c) Suppose a bank has return on assets of 4% and return on equity of 24%, what is thebanks leverage and leverage ratio?(d) Suppose a bank has a 15% reserve requirement and can loan funds at an interest rateof 4% while paying depositors 1%. Consider a deposit of $100, what is the return thebank earns on this $100? (e) Now suppose reserve requirements are 20% how does your answer to the previous ques-tion change? Which policy would banks prefer?(b) Mahsuri Bank which is one of the local banks in your community has the following balance sheet (in billions of RM) as follows: Liabilities 3,000 Deposits 1,350 Assets RM billions RM billions Reserves 5,000 Government securities Loans 650 i. If the required reserve ratio is 0.25 or 25 percent, how much in excess reserves does the bank hold? ii. Determine the maximum amount by which the bank can expand its loan? If the bank makes the loans in (ii), show the immediate impact on the bank's balance sheet. ii.39. Consider a fractional-reserve banking system in which an initial deposit of $1,000 can generate up to $4,000 in money. What is the reserve ratio? (A) 4 percent. (B) 5 percent. (C) 25 percent. (D) 75 percent.
- Q (B Ashley deposits $50,000 in a commercial bank that is required to retain 20% in reserve. The deposit increases the lending capacity of the bank by: Group of answer choices $10,000. $50,000. $5,000. $40,000.Part 1. The accompanying table gives data for a commercial bank or thrift. Scenarios Reserve Checkable Actual Excess Reserves Requirement (%) Deposits Reserves W $100,000 $10,000 $0 (1) (2) (3) 20,000 12,000 12 200,000 Y 8,000 20 300,000 70,000 (4) Fill-up the values for W, X, Y and ZQUESTION 26 Explain a banking system of your choice (US, Europe, Japan, UK, Emerging Economies). For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 14px E v E