The Golden State Bank has total cash reserves of $110,000, deposits of $200,000, and loans of $90,000.  The reserve requirement is 5 percent.  This bank can make additional loans up to the amount of: $10,000 $5,500 $100,000 $190,000

7

Ee 497.

If $2,000 is withdrawn from the bank by a customer, the bank's     Assets and liabilities decrease   Assets rise   Liabilities decrease and assets rise   Assets decrease and liabilities rise

Question 5 Homework ⚫ Answered ⚫ Due Jul 24th, 11:50 PM MONEY IN THE ECONOMY ($billions) Currency held by the public = $1,000 Demand Deposits = $3,000 Other Liquid Deposits = $12,000 Small Denomination Time Deposits = $500 Retail Money Market Funds = $1,500 Use the information above to answer this item. If depositors move $100 billion from demand deposits to small denomination time deposits, then: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b C the value of M1 stays the same, the value of M2 increases by $100 billion, and the system becomes less liquid. the value of M1 decreases by $100 billion, the value of M2 stays the same, and the system becomes less liquid. the value of M1 decreases by $100 billion, the value of M2 increases by $100 billion, and the system becomes less liquid. × Your answer d the value of M1 stays the same, the value of M2 stays the same, and the liquidity of the system does not change.

11. The monies that are very liquid such as cash, checkable (demand) deposits, and traveler's checks are considered to be

10 Raquel goes down to Goldenrod Bank and deposits $2350 into their checking account. What has happened to Goldenrod Bank’s balance sheet? Mortgages have increased by $2350 The money multiplier has increased Goldenrod Bank's reserve ratio has increased Goldenrod Bank's liabilities have increased by $2350

6. If a bank has reserves of $75 and excess reserves are equal to $0 when the reserve ratio is 10%, the bank has deposits of $

2