The supply of reserves is determined by 1. The fed's provision of non borrowed reserves through open market operations  2. Borrowed reserves in the form of discount loans from the Fed  3. Borrowed reserves in the form of regular loans  4. The Fed's manipulation of reserve requirements

Suppose a bank has a total deposit  of $748 million. If the bank’s required reserves equal $253 million, total loans equal $368 million, then the bank has excess reserves of: Group of answer choices $109 million. $115 million. $127 million. $380 million. $495 million.

If the Federal Reserve increases the discount rate from 14 percent to 16 percent banks will borrow   Multiple Choice   fewer reserves from the Fed and lending will increase.   fewer reserves from the Fed and lending will decrease.   more reserves from the Fed and lending will increase.   more reserves from the Fed and lending will decrease.

The bank starts with $600 in bank capital. It then accepts $9,400 in deposits. The reserve requirement is 18%, and the bank decides to keep an extra 7% of deposits as excess reserves. The bank uses the rest of the assets to provide loans. a) Show the balance sheet of the bank. Find the leverage ratio. b) Suppose the bank's largest depositor withdraws $1,400. The bank decides to restore its reserve ratio by reducing the amount of loans. Show the new balance sheet of the bank. Find the new leverage ratio. c) Why might it be difficult for the bank to take this action? Describe another way the bank can return to its original reserve ratio. d) Following the events of part (b), the borrowers defaulted on 5% of loans from the bank. So, these loans become worthless, and bank capital is used to adjust for this event. Show the new balance sheet of the bank. Find the new leverage ratio.

For this bank what would be the level of excess reserves if the required reserve ratio were 20%? A) 0 B) $300,000 C) $900,000 D) $1,000,000 E) There would be a shortfall in required reserves of $100,000

11) Which of the following increases the quantity of money? A) an individual's cash withdrawal from a bank B) an individual's purchase of a government security from the Fed C) the Fed's purchase of a government security D) an increase in the government's budget deficit 12) Open market purchases by the Federal Reserve System (the Fed) A) raise the federal funds rate. B) increase bank reserves. C) occur when the Fed wants to decrease the quantity of money. D) All of the above answers are correct. 13) When the Fed raises the federal funds rate, A) net exports increase. B) the value of the dollar falls on the foreign exchange market. C) the value of the dollar rises on the foreign exchange market. D) consumption increases. 14) If the Fed raises the federal funds rate so that the exchange rate rises, then imports ________ and exports ________. A) increase; increase B) increase; decrease C) decrease; increase D)…

Part 8 says reserves: number Part 9 says loans: number

When the reserve requirement changes, which of the following will change for an individual bank?   Multiple Choice   a.) transactions account balances and lending capacity   b.) required reserves, excess reserves, and lending capacity   c.) transactions account balances, total reserves, and excess reserves   d.) total reserves, required reserves, and excess reserves

If the required reserve ratio is 5%, how much can this bank lend? A) 400,000 B) 600,000 C) 750,000 D) 800,000 E) 900,000

If the required reserve ratio is 5%, what is the level of excess reserves this bank holds? a) $900,000 b) $1,000,000 c) $750,000 d) $500,000 e) $400,000