The commercial banking system has excess reserves of $4,000. Then new loans of $30,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be %. Your Answer: Answer

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What types of regulations commercial banks are subject to and why commercial banks are subject to reserve requirement?

The balance sheet of Nationa Bank is shown below (assume a legal reserve ratio of 10%): Assets   Liabilities & Net Worth   Reserves 90,000 Checkable Deposits 500,000 Cash 20,000 Stock Shares 270,000 Loans 125,000     Securities 235,000     Property 300,000     1. Based on the balance sheet above, how much money can the bank create? 2. If the bank creates the full amount possible, how much money can the banking system create as a result? 3. If the Federal Reserve raises the reserve ratio to 20%, how much will the bank and banking system be able to create based on the new reserve ratio?

You deposit a $1,000 scholarship check in the bank. If the required reserve ratio is 10 percent, explain how the banking system will create new money and how much money can potentially be created.

Find the amount of money that would be created in the banking system because of the money multiplier if the required reserve ratio is 6%, and a bank that had been holding $550 as excess reserves decides to loan all this money out.

In your own words, please define the following terms: asset, balance sheet, credit risk, excess reserves, interest- rate risk, liquidity risk, required reserves,Federal deposit insurance. Please make it simple and no plagiarism thank you

Find the value of money multiplier if the required reserve ratio is 50%?

Ee 497.

The following tables show the balance sheets of two banks: Wide Bank and Narrow Bank. Wide Bank Balance Sheet Assets Llabilities and Net Worth Reserves $100,000 Checking deposits $300,000 Loans outstanding $250,000 Stockholders' equity $50,000 Total $350,000 Total $350,000 Narrow Bank Balance Sheet Assets Liabilities and Net Worth Reserves $0 Checking deposits $0 Loans outstanding $500,000 Stockholders' equity $500,000 Total $500,000 Total $500,000 Wide Bank is a levered bank, while Narrow Bank is an unlevered bank. Narrow Bank h banks offer an annual rate of 4% on checking deposits and charge an annual rate of 8% on loans. Wide Bank Por wiue vank, the annual interest cost on deposits is s profit of s and the annual return on loans is s Hence, Wide Bank earns a net ], which represents a rate of return of % (Hint: Round to 1 decimal place.) on stockholders' equity. For Narrow Bank, the annual interest cost on deposits is s and the annual return on loans is s . Hence, Narrow Bank earns a…