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 the required reserve ratio is 0.10, what is the maximum increase in checkable deposits achievable with an increase in reserves of $750? Group of answer choices A) $7,500 B) $750 C) $850 D) $825 E) $8,250

Suppose that you deposit $411 at an interest rate of i = 3% Using the formula for future value, how much will you have in the bank after 81 periods? Round your answer to two (2) decimal places if necessary and do not include a dollar sign

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.