Suppose an economy's financial system has $2,000,000 in deposits while banks in this system keep $400,000 in reserves. If the Central Bank mandates 7% reserve requirement: (21 points) a. What is the amount of loans this financial system is lending? b. What is the Money Multiplier?

Currency in Circulation (October 2020) 40.5 billion Nigerian currency Reserves (October 2020) 34.2 billion Nigeriancurrency M1 (October 2020) 2,465.9 billion Nigeriancurrency M2 (October 2020) 2,638.8 billion Nigeriancurrency Calculate the size of the actual money (M2) multiplier in October 2020.  Round your answer to one decimal place.   Nigeria's central bank, N. Bank, has not set a required reserve ratio (you can treat the required reserve ratio as 0%).  Calcuate the excess reserve ratio for Norway in October 2020.  Enter your answer in percent form without the percent sign.  Round to one decimal place.

(Table: Balance Sheet) Refer to the information in the tableBalance Sheet. If the reserve ratio is 25% and the bank is exactly meeting its reserve requirement and the bank is exactly meeting its reserve requirement, loans are:     A) $60,000.   B) $15,000.   C) $5,000.   D) $80,000.

I only need Help with part (B)

8. The reserve requirement, open market operations, and the money supply Consider a system of banking in which the Federal Reserve uses required reserves to control the money supply (as was the case in the United States before 2008). Assume that banks do not hold excess reserves and that households do not hold currency, so the only money exists in the form of demand deposits. To further simplify, assume the banking system has total reserves of $400. Determine the money multiplier as well as the money supply for each reserve requirement listed in the following table. Reserve Requirement Simple Money Multiplier Money Supply (Percent) (Dollars) 20           10             A higher reserve requirement is associated with a    money supply.   Suppose the Federal Reserve wants to increase the money supply by $200. Maintain the assumption that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%,…

Total reserves $55 billion Transactions deposits: $600 billion Cash held by public: $400 billion Bonds held by public: $400 billion Stocks held by public: $140 billion Gross domestic product: $8 trillion Interest rate: 6 percent Required reserve ratio: 0.10 How large is the money supply (M1)? How much excess reserves are there? What is the money multiplier? What is the available lending capacity?

Consider the following bank. Cash in Vaults=$25 Its deposits at Central Bank-$275 Loans it has made to customers=$1600 Value of government bonds it owns=$100 Deposits made by its customers=$2000 What are the bank's reserves (in dollars)? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)

4) Listen If the money multiplier decreased from 20 to 4, then the Fed increased the reserve ratio from 5 percent to 8 percent. the Fed increased the fed funds rate from 5 percent to 8 percent. the Fed increased the reserve ratio from 5 percent to 25 percent. the Fed decreased the fed funds rate from 8 percent to 5 percent. Question 30 (1 point) )Listen The FOMC is able to increase the money supply when it buys US government securities. The increase will be larger, the larger is the reserve ratio. buys US government securities. The increase will be larger, the smaller is the reserve ratio. sells US government securities. The increase will be larger, the smaller is the reserve ratio. sells US government securities. The increase will be larger, the larger is the reserve ratio.

Answer question 1

39. Which of the following are ways in which banks can help businesses in the United States? Choose all that apply. Banks can reduce the money supply through the use of the money multiplier. Banks can serve as a stopgap to save struggling businesses from bankruptcy with small loans. Bank loans remove personal liability from company owners. O Bank loans are tax-deductible for businesses.