Real-Time Data Analysis Exercise Week November 22 2023 November 29 2023 Federal Funds Rate (percent per year) 5.33 5.33 Reserves (billions of dollars) 3,454 3,442 "Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis Draw the supply of reserves curve for November 29 2023 and label it RS Draw the demand for reserves curve for November 29 2023 and label it RD Draw a point at the equilibrium quantity of reserves and federal funds rate 10 68 8.01- 6.34- 267- 000 Federal funds rate (percent per year) 1,242 2.342 3,442 4.542 Reserves (billions of dollars) >>>Draw only the objects specified in the question. 5,642

Real-Time Data Analysis Exercise Week November 22 2023 November 29 2023 Federal Funds Rate (percent per year) 5.33 5.33 Reserves (billions of dollars) 3,454 3,442 "Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis Draw the supply of reserves curve for November 29 2023 and label it RS Draw the demand for reserves curve for November 29 2023 and label it RD Draw a point at the equilibrium quantity of reserves and federal funds rate 10 68 8.01- 6.34- 267- 000 Federal funds rate (percent per year) 1,242 2.342 3,442 4.542 Reserves (billions of dollars) >>>Draw only the objects specified in the question. 5,642

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Banking And The Money Supply

Section: Chapter Questions

Problem 2.3P

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Similar questions

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Suppose that a lottery winner deposits $5 million in cash into her transactions account at the Bank of America. Assume a reserve requirement of 20 percent and no excess reserves in the banking system prior to this deposit. Show the changes on the Bank of America balance sheet when the $5 million is initially deposited. BANK OF AMERICA - Assets Change in required reserves: _ million Change in excess reserves: million Change in total reserves: million - Liabilities Change in deposits: million
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For this part think about Demand and supply in the market of Reserves. a. Who are on the demand side of the market? b. Who are on the supply side of the market? c. Assume equilibrium federal funds rate is strictly between discount rate and interest on reserves. Draw demand, supply and equilibrium for the market of reserves below. (Label axis, curves and equilibrium point) d. Draw NEW supply and demand graph for reserves on which equilibrium federal funds rate equals discount rate but is above interest on reserves. (again label axis, curves and equilibrium point) e. What happens on the First graph when discount rate drops? Show shift and explain how equilibrium federal funds rate and equilibrium quantity of reserves changes. (Write explanations below but make shifts on the graph for question (c)) f. What happens on the Second graph when discount rate drops? Show shift and explain how equilibrium federal funds rate and equilibrium quantity of reserves…
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Assets Liabilities Required Reserves: $360000 Deposits: $1250000 Loans $150000 Capital: 0 Bonds: $740000 The above is the T-Accounts for TD bank. If the reserve ratio is 20 percent, what is the change in loans after the excess reserves are loaned out? Answer:
If reserves are scarce, how would the federal funds rate change (increase or decrease) if the Fed: (a) buys mortgage-backed securities (b) conducts overnight repo operations (c) conducts overnight reverse repo operations (d) increases the (minimum) reserve requirements Only typed Answer
5. If reserves are scarce, how would the federal funds rate change (increase or decrease) if the Fed: 1) sells mortgage-backed securities 2) decreases the (minimum) reserve requirements 3) conducts overnight repo operations 4) conducts overnight reverse repo operations
Assets Answer: Liabilities Required Reserves: $460000 Loans $150000 Bonds: $1940000 The above is the T-Accounts for TD bank. If the reserve ratio is 10 percent, what is the change in loans after the excess reserves are loaned out? Deposits: $2550000 Capital: 0