Answer the question on the basis of the following balance sheet for the First National Bank of Bunco. All figures are in millions.Assets:reserves $20loans $25securities $15property $90Liabilities + net worth:checkable deposits $100stock shares $50Refer to the data. If this bank has excess reserves of $6 million, the legal reserve ratio must be:10 percent.12 percent.14 percent.20 percent.

Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 42Deposits 245Loans 160 Securities 48Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)

Suppose a credit union has checkable deposits of $500,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $5,000, then its actual reserves are Multiple Choice   $55,000.   $45,000.   $5,000.   $50,000.

Refer to Table 10.1. First Commercial Bank's total loans equal $________.     First Commercial Bank Assets Liabilities + Net Worth Reserves $200,000 $1 million Deposits          Required -- $200,000 Net Worth          Excess $50,000     Loans --     Total $1.2 million $1.2 million Total   1,000,000. 1,050,000 1,150,000 1,200,000

2. Here is the balance sheet of the consolidated banking system of the country of Zargadee (all entries are in millions): Consolidated Balance Sheet of the Entire Economy of Zargadee Assets Reserves Cash in Vault Deposits at CBZ Bonds Loans 50 90 Total Reserves Total Assets 140 460 1000 1600 Liabilities Deposits Borrowing from CBZ Total Liabilities 1400 200 1600 Assume that 1) households hold no currency and 2) banks hold no excess reserves. The current reserve requirement is 10%. The Central Bank of Zargadee (CBZ) uses the three traditional tools to perform monetary policy in an economy that is reserve constrained. a. Under our assumptions, what is the money multiplier? For each part (b)-(d) below, i) Conceptually explain the effect of the policy on the money supply. ii) Calculate the change in M1 given our assumptions. iii) Construct the new balance sheet of the consolidated banking system of Zargadee under the new policy. iv) When the money supply changes, list a chain of events to…

Suppose a commercial bank has checkable deposits of $60,000 and the legal reserve ratio is 25 percent. If the bank's required and excess reserves are equal, then its actual reserves Multiple Choice are $1,500,000. cannot be determined from the given information. are $30,000. are $15,000.

Suppose that Big Bucks Bank has the simplified balance sheet shown below. The reserve ratio is 10 percent. Assets Liabilities and net worth (1) (2) (1') (2') Reserves $ 25,000 Checkable deposits $ 100.000 Securities 38,000 Loans 37,000 Instructions: Enter your answers as a whole number. a. What is the maximum amount of new loans that Big Bucks Bank can make? Using the table above, show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount by inserting the new values into the gray shaded cells of the given table. b. By how much has the money supply changed? c. How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against the bank? Show the new balance sheet in columns 2 and 2' by inserting the new values into the gray shaded cells of the given table. d. Using the original figures, revisit questions a, b, and c based on the assumption that the reserve ratio is now 5…

Consider the relative liquidity of the following assets: Assets 1. A bond issued by a publicly traded company 2. The funds in a savings account 3. A $1 bill 4. Your condo Select the assets in order of their liquidity, from most liquid to least liquid. Most Liquid Second-Most Liquid Third-Most Liquid Least Liquid Asset

The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 5%. Liabilities/Equity Demand Deposits Shareholders' equity Assets Reserves Loans Securities Fixed assets Total $3,000 34,000 8,500 4,500 50,000 Total $40,000 10,000 50,000 a. The Oilers Bank is over-reserved by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it. The new amount of excess reserves is $ c. Instead, the cheque written by the borrower is cleared against the Oilers Bank (the cheque was written to a customer of another bank). The amount of excess reserves held by the Oilers Bank is $

Reserves Loans Assets O 16.7 percent. 15.7 percent. 6.0 percent. Bank of Pleasantville Refer to Table 29-4. The Bank of Pleasantville's reserve ratio is 6.4 percent. $3,000 Deposits 47,000 Liabilities $50,000