Policy Decisions Suppose a person who is developing a card game crowdfunds $15,000 and holds this as cash for future expenses. If this $15,000 comes from donors' checking accounts, by how much will the money supply fall if the reserve ratio is 5 percent? Instructions: Enter your response as a whole number. The money supply will decrease by $
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- Decisions for Tomorrow Suppose a person who is developing a card game crowdfunds $25,000 and holds this as cash for future expenses. If this $25,000 comes from donors' checking accounts, by how much will the money supply fall if the reserve ratio is 5 percent? Instructions: Enter your response as a whole number. The money supply will decrease by $You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 20%, how much will your deposit increase the total value of checkable bank deposits? If the reserve requirement is 8%, how much will your deposit increase the total value of checkable deposits? Increasing the reserve requirement decreases the money supply. %24 %24If the required reserve ratio (RRR) in U.S. is 10 percent and you deposit $5,000, which is wired from your parents’ bank account in Germany to your checking account in the U.S. National Bank, then the change in the U.S. money supply eventually should be Group of answer choices a $45,000 increase. a $5,000 increase. no change. a $50,000 increase.
- Suppose you inherited $257,000 cash from a bequest, and you decide to deposit it at your bank. Assuming the $257,000 is the only money supply in the economy, your task is to determine how much money your bank can create using the $257,000 you deposited. Show all your calculations The required reserve ratio is 3.5%. a. How much of the initial money supply can the bank give out as loans? If the recipient of the loan keeps the money at the same bank, what will be the total money supply in the economy? b. How much of the new money supply can the bank give out as loans? Will it increase or decrease the total money in the economy? By how much? c. Suppose the required reserve ratio increases by 4.5%, repeat steps in parts (a) and (b). What is the total money supply in the economy? Thank you so much!!You decide to take $600 out of your piggy bank at home and place it in the bank. If the reserve requirement is 2 percent, how much can your $600 increase the amount of money in the economy? Instructions: Round your answer to the nearest dollar. $__a) Suppose that Tk.10,000 in new taka bills (never seen before) falls magically from the sky into your hands. What are the minimum increase and the maximum increase in the money supply that may result? Assume the required reserve ratio is 10 percent. Explain in details.b) Suppose you receive Tk. 10,000 from your grandmother and deposits the money in a saving account. your grandmother gave you the money by writing a check on her saving account. Would the maximum increase in the money supply still be what you found it to be in part a) where you received the money from the sky? Why or why not? Explain in details. c) Suppose that instead you getting Tk. 10,000 from the sky or a check through your grandmother, you get the money from your mother who had buried it in a can in her backyard. In this case, would the maximum increase in the money supply be what you found it to be in part a)? Why or why not? Explain in details.
- Suppose your grandma sends you $100 for your birthday and you deposit that $100 into your checking account at the local bank. The reserve ratio is 10%. Based upon this deposit, how much have the bank's reserves have increased by and how much have the bank's checkable deposits have increased by?a) Suppose that Tk.10,000 in new taka bills (never seen before) falls magically from the sky into your hands. What are the minimum increase and the maximum increase in the money supply that may result? Assume the required reserve ratio is 10 percent.b) Suppose you receive Tk. 10,000 from your grandmother and deposits the money in a saving account. your grandmother gave you the money by writing a check on her saving account. Would the maximum increase in the money supply still be what you found it to be in part a) where you received the money from the sky? Why or why not?c) Suppose that instead you getting Tk. 10,000 from the sky or a check through your grandmother, you get the money from your mother who had buried it in a can in her backyard. In this case, would the maximum increase in the money supply be what you found it to be in part a)? Why or why not?When Christine deposits $1,000 in Bank A, and there is a reserve requirement ratio of 10%, how much can Bank A lend out?
- Suppose you deposit $700 cash into your checking account. By how much will the total money supply increase as a result when the required reserve ratio is 0.20? The change in the money supply is: $ (enter your result rounded to the nearest dollar).Decisions for Tomorrow Suppose a person who is developing a card game crowdfunds $40,000 and holds this as cash for future expenses. If this $40,000 comes from donors' checking accounts, by how much will the money supply fall if the reserve ratio is 10 percent?The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves.(Please note I already have part 1 answered. If you could just help me with the rest that would be great.)( ALSO note that I have included the graph/table it is attached as a image) Recall, to calculate checkable deposits you have to add the original checkable deposits to the new deposit. To calculate required reserves for the deposits, you have to multiply the required reserve ratio (decimal from) by checkable deposits. To calculate excess reserves, you will subtract required reserves from actual reserves. Part 1: What level of excess reserves does the bank now have? (20,000+5,000)-21,000=4,000 is the amount of excess reserve. Part 2: Complete the table below for the Third National Bank. You have to distinguish between a bank's assets and bank's liabilities. The figures in…