The bank plans to hold $7 for every $100 in deposits. The bank holds actual reserves of $11,000 and desired reserves of $7,000. What is the bank's desired reserve ratio and its excess reserves? >>> Answer to 2 decimal places. The bank's desired reserve ratio is percent. The banks excess reserves are S[

The bank plans to hold $7 for every $100 in deposits. The bank holds actual reserves of $11,000 and desired reserves of $7,000. What is the bank's desired reserve ratio and its excess reserves? >>> Answer to 2 decimal places. The bank's desired reserve ratio is percent. The banks excess reserves are S[

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the following information to answer the questions: Suppose the Texans Bank has total deposit of $2,769, and the required reserve ratio of 6 percent. The current total reserve for the bank is $438. What is the excess reserve for this bank? [Hint: enter your answer in 2 decimal places)
Am. 398.
Suppose Robina Bank receives a deposit of $53,589 and the reserve requirement is 3%. Answer the questions using this information. Round your answers to two decimal places. What is the amount that Robina Bank must keep on hand as required by the Federal Reserve (Fed)? What is the amount that Robina Bank must have in excess reserves from this initial deposit? What is the total change in the M1 money supply from this one deposit? keep on hand: $ excess reserves: $ total change: $ Activate Windows 11:01 PM
How much will the money supply increase if excess reserves increase by $40 million and the reserve requirement is 21 percent? Multiple Choice $4.76 million $190.48 million $1.90 million $840.00 million
Suppose that Bob withdraws $100 of cash from his checking account at Security Bank and uses it to buy a camera from Joe, who deposits the $100 in his checking account in Serenity Bank. Assuming a reserve ratio of 10 percent and no initial excess reserves, determine the extent to which(a) Security Bank finds itself short of required reserves,(b) Serenity Bank finds it has excess reserves, and (c) loans, checkable deposits, and the money supply change as a result of the transactions.
Assume the required reserve ratio is 10% and the Open Market Committee of the FED sells $100 billion in bonds to the public. Assuming banks give out as many loans as possible, what is the total change in the money supply? If the M1 was originally $7500 billion, what is the new M1 ( After the change)You must show your work.
Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $100. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. Reserve Requirement Simple Money Multiplier Money Supply (Percent) (Dollars) 15 15 150 10 10 100
Suppose your grandma sends you $100 for your birthday and you deposit that $100 into your checking account at the local bank. The reserve ratio is 10%. Based upon this deposit, how much have the bank's reserves have increased by and how much have the bank's checkable deposits have increased by?
4. a) Suppose that Tk.10,000 in new taka bills (never seen before) falls magically from the sky into your hands. What are the minimum increase and the maximum increase in the money supply that may result? Assume the required reserve ratio is 10 percent.b) Suppose you receive Tk. 10,000 from your grandmother and deposits the money in a saving account. your grandmother gave you the money by writing a check on her saving account. Would the maximum increase in the money supply still be what you found it to be in part a) where you received the money from the sky? Why or why not?c) Suppose that instead you getting Tk. 10,000 from the sky or a check through your grandmother, you get the money from your mother who had buried it in a can in her backyard. In this case, would the maximum increase in the money supply be what you found it to be in part a)? Why or why not?
Total reserves that a bank has at the Fed are $14 million. Currently the bank has excess reserves of $5 million and has made loans of $100 million. The Fed's reserve requirement for the bank is 6%. What is the maximum deposit level (in $ millions) the bank can expand to by utilizing its excess reserves? [Input your answer rounded to 1 decimal places. Just input the numerical value. You do not need to put the $ symbol or "millions" in your answer.]