demand model

I need help on D through H! Please! Suppose the reserve requirement is 8% and a new deposit of $900 billion is made into the banking system. Create T accounts to analyze the following questions. a) Initially, reserves would increase by? $900 Billion b) Required reserves would increase by? $72 billion c) Excess reserves would increase by? $828 billion d) The first round of loans would amount to? e) The second round of loans would amount to approximately? f) For the entire macroeconomy, after the infinite rounds of loans were taken into account, money supply would increase by? g) If the Federal Reserve bought bonds worth $600 billion, money supply would increase by? h) If the Federal Reserve sold bonds worth $600 billion, money supply would decrease by?

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Please xplain why the answer is this:  a) 0.1 * 1000 = 100 b) 1000-100 = 900 c) Let CU be currency in circulation   Old MS = CU + R*[1/reserve deposit ratio] = CU + existing created deposits = CU + 30000 New MS after deposit = [CU – 1000] + [existing created deposits] + [newly created deposits] = [CU -1000] + [30000] + [1000*1/0.1] Difference = -1000 + [1000/0.1] = 9000 a) 0.1 * 1000 = 100 b) 1000-100 = 900 c) Let CU be currency in circulation   Old MS = CU + R*[1/reserve deposit ratio] = CU + existing created deposits = CU + 30000 New MS after deposit = [CU – 1000] + [existing created deposits] + [newly created deposits] = [CU -1000] + [30000] + [1000*1/0.1] Difference = -1000 + [1000/0.1] = 9000

When the first deposit deposited in the bank is 250,000 TL and the required reserve ratio determined by the central bank is 10%, how much is the total loan volume created? a. 1.000.000 b. 2.250.000 C. 2.500.000 d. 25.000.000 e. 750.000

You're using prices to determine which apple is best (obviously Honeycrisp). What is the use of money in this context? -store of value -unit of account -discount sharing -medium of exchange

11) One possible reason for slower growth in developing and transition countries is A) capital may not be directed to its most productive use. B) strict accounting standards are too stringent for the banks to meet. C) the weak link between government and financial intermediaries. D) the lack of adverse selection and moral hazard problems. 12) One reason financial systems in developing and transition countries are underdeveloped is A) they have weak links to their governments. B) they make loans only to nonprofit entities. C) the legal system may be poor making it difficult to enforce restrictive covenants. D) the accounting standards are too stringent for the banks to meet. 13) Because of the weak systems of property rights in many developing and transition economies, the financial system is unable to use collateral effectively worsening the ________ problem. A) adverse selection B) moral hazard C) principal/agent D) diversification 14) In developing…

In what sense can you use commodity swaps to achieve the same goal as in signing commodity futures? Graph if helpful.

Free rider problem is an issue that occurs when people who do not pay for information take advantage of the information that other people have paid for Banks reduce the free-rider problem in information production by A making private, nontraded loans so other lenders cannot benefit from the information they have collected about the borrower B. charging others for information about the financial condition of potential borrowers C. buying tradable securities with their depositors' funds D. serving as an intermediary that holds scarcely any nontraded loans

6.     One of the banking innovations in the 1960s was the payment of interest on certain types of demand deposits. Assume that interest is paid on money at the nominal rate Rm, which equals (R − x), where x is the nominal return on bonds, which is exogenously determined by market structures and the cost of servicing deposits. (i)    Use Baumol’s transactions demand model to derive the demand function for money. (ii)    Generalizing the above demand function to md(y, R, x), shows the behavior of the LM curve for shifts in x and P. (iii)    What is the effect of an increase in x on aggregate demand, output and price level in the neoclassical model? (iv)     Assuming that both R and x always increase by the expected rate of inflation, do (ii) and (iii) again.