A financial depository institution's reserve requirement is a specified percentage of: Group of answer choices deposits that must be kept as actual reserves. regulated reserves provided by the federal government. required reserves that must be kept as part of actual reserves. actual reserves kept at the federal reserve. excess reserves that must be backed as required reserves.

Required reserves of banks are a fixed percentage of their: Select one: Loans Deposits Assets Government bonds

The money base in an economy is 200bn. The public holds a quarter of it in cash, and the reserve ratio is 20%. If the public reduces the quantity of cash held by 10bn then the supply of liquid assets will increase by

A bank run can bankrupt a healthy bank because of all of the following EXCEPT which one? Bank will suffer a huge loss when it is forced to sell its non-cash assets in a short time period. Bank's cash in the vault is only a fraction of its total deposits. This bank has a lot of non-performing loans. On average bank's liabilities are always more liquid than its assets.

The Federal Reserve has decided to sell treasury bonds on a regular basis over the next few weeks. Identify by name and describe in detail the specific tool that is being used by the Federal Reserve, and then based on what it is doing, explain whether you would recommend borrowing at this time or waiting until later, and explain why.

Monetary Policy. define the concept or idea. explain your new way of viewing or understanding the concept. What will you do differently? What follows. the reason why your perspective or understanding changed.

The commercial banking system has excess reserves of $4,000. Then new loans of $30,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be _%. Your Answer: Answer

Banks borrow money at a much higher rate from the fed then they offer you for loans. True or false

Fractional Banking allows A) banks to make loans. B) businesses to loan to individuals. C) ndividuals to borrow from the Fed. D) banks to borrow from the Fed

Suppose a bank has a total deposit  of $748 million. If the bank’s required reserves equal $253 million, total loans equal $368 million, then the bank has excess reserves of: Group of answer choices $109 million. $115 million. $127 million. $380 million. $495 million.