The First National Bank of Hawkinstan currently offers 1% interest on all of its demand deposits, which currently total $1,000,000. The reserve ratio, implemented by the central bank is 5%. When borrowers take out a loan from this bank, they are charged 6.5% interest.   Based upon this, the total profit for the bank is:

When Exxon Corporation decides to keep corporate records in terms of US dollars, they are using money as: a store of value O expander of economic activity a medium of exchange O a unit of account

what will be the M3 when the M4 is 531 and the total deposit with post savings are 402

The central bank buys $10,000 worth of bonds in the open market from Elaine, who deposits the proceeds in her checking account at MSM Bank. The required reserve ratio is 5%. (a) What is the amount by which MSM Bank’s liabilities have changed? Explain. (b) Calculate the change in required reserves for MSM Bank. Show your work. (c) What is the dollar value of the maximum amount of new loans MSM Bank can initially make as a result of Elaine’s deposit? Explain. (d) Based on the central bank’s open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system. Show your work. (e) How will the change in the money supply in part (d) affect aggregate demand and the price level in the short run? Explain.

COVID-19 brought global economic and financial ramifications that were felt through global supply chains, from raw materials to finished products. Some term it as a black swan event that may finally force many companies, and entire industries, to rethink and transform their global supply chain model. If you are the CEO of a U.S. based company which is heavily dependent on foreign locations for sourcing and manufacturing, how would you make short-term and long-term plans to modify your supply chain model? List and discuss the main considerations or factors that will influence your decision.

With the flourishing economy in Belarus, many foreign workers from India work there. It is a good business for remittance services whereas banks in Belarus transfer money to India. Unfortunately, the remittance industry is a new industry for Belarus banks. Looking at this opportunity, Germany’s  Deutsche Bank AG plans to open a foreign branch in Belarus. Deutsche Bank AG plans to target the remittance market, especially, with the condensed remittance market in Germany. Discuss what are the three possible reasons for Germany’s  Deutsche Bank AG to open a foreign branch in Belarus?

The Required Reserve Ratio is 25% for all banks. Assuming that all the customers that have outstanding loans have used all of those additional funds to invest in new machinery for their businesses (therefore, the amount of Checkable Deposits is the true liability the bank has to its customers), then $_____________ is the resulting change to the loan creating potential of the whole system (these three banks) as a result of Second National Bank customers depositing an additional $400,000 in their Checkable Deposit accounts. (Do NOT enter the '$' in your response. Enter a whole dollar amount; do NOT enter cents.) in new loans.

Bank credit creation is seen by Werner as a reason for the Japanese economic boom in the 80’s and subsequent collapse in the 90’s, and generally boom bust cycles occur, because, (a) Banks were merely intermediaries, taking deposits and giving loans, causing the rise and fall. (b) “Good” debt from asset lending allowed banks to lend to the real sector increasing nominal GDP, when asset prices fell, the “bad” debt caused banks to withdraw credit to the real sector causing a recession. (c) Banks lent heavily to assets, causing asset prices to rise and then withdrew credit from assets causing a collapse (d) Both (b) and (c) (e) All of the above