The Fed buys $1 million in bonds from a bond dealer. The bond dealer deposits the money in a bank account. The reserve ratio is 15%. How much can the bank lend after taking the deposit? A

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

Jane deposits $175 into her bank, and the reserve requirement is 15 percent.  How much is the excess reserve in dollars

The government of a small country imposes a minimum reserve ratio of 7%. If a bank within this country receives a deposit of $130,000, then: Select one: a. $9,100 should be lent out to customers and $120,900 should be held by the bank b. $120,900 should be lent out to customers and $9,100 should be held by the bank c. None of the answers are correct d. $130,000 should be fully lent to customers at 7% $130,000 should be fully lent to customers at 7% $130,000 should be fully lent to customers at 7% e. $130,000 should be held by the bank

How do sweep accounts and money market mutualfunds allow banks to avoid reserve requirements?

If federal deposit insurance is provided to banks at no cost to them, who pays when an insured depository institution fails and its depositors are reimbursed for the full amount of their deposits?

The manager of the bank where you work tells you that the bank has $100 million in deposits and $22 million dollars in loans. If the reserve requirement is 8 percent, how much is the bank holding in excess reserves?

The First National Bank has $100million in chequable deposits. The desired reserve ratio is 6%. (i) Calculate the Bank's reserves. Round your answer to two decimal places. (ii) The Bank desires to invest $30million in Treasury bills. The Treasury bills are currently trading at $4986.7 (including brokerage fee). How many Treasury bills does the Bank purchase? Round your answer to the nearest whole number. (iii) The Bank makes commercial loans of $25millions and lends $39.3million in mortgages. Calculate the amount of bank capital. (iv) Complete the balance sheet of the Bank. (v) Assume that there is a shortfall of reserves because depositors withdraw $5million from the Bank. Show the new balance sheet of the Bank. What can the Bank do to eliminate the shortfall of reserves?

When the Fed wishes to decrease the money supply, it can   a. increase the required reserve ratio.   b. decrease the required reserve ratio.   c. ask people to buy more bonds.   d. turn additional funds over to the Treasury.

What is the reserve requirement