The table below is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 2.5 Assets Reserves. Loans Securities Fixed assets Total $160,000 $ 5,226,500 675,000 688,500 6,750,000 Liabilities/Equity Demand Deposits Shareholders' equity Total $6,075,000 $ 675,000 6,750,000 a. The amount of excess reserves is $ b. The maximum amount that loans and deposits could be increased by is $ c. Assume that the system becomes fully loaned up. Show the new balance sheet in the table above. d. Now that the system is fully loaned up, the money supply will have increased by $

The table below is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 2.5 Assets Reserves. Loans Securities Fixed assets Total $160,000 $ 5,226,500 675,000 688,500 6,750,000 Liabilities/Equity Demand Deposits Shareholders' equity Total $6,075,000 $ 675,000 6,750,000 a. The amount of excess reserves is $ b. The maximum amount that loans and deposits could be increased by is $ c. Assume that the system becomes fully loaned up. Show the new balance sheet in the table above. d. Now that the system is fully loaned up, the money supply will have increased by $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. Which of the following is liability ona bank's balance sheet? a. a certificate of deposit b. consumer loans c. physical capital d. Treasury securities e. all of the above
5 A bank has $210,000 in excess reserves and the required reserve ratio is 25 percent. This means the bank could have total reserves. $80,000, $10,000 $100,000, $50,000 $280,000, $70,000 $50.000, $30.000 6 If a bank's excess reserve is zero and the required reserve ratio is increased, which of the following will happen? Banks will begin to extend more credit. Banks will have positive excess reserves. Banks will begin to extend more loans. Banks will have a reserve deficiency in checkable deposit liabilities and
Complete the table below for the Third National Bank. Classify the assets and liabilities and net worth. What is the total assets of Third National Bank? Assets Liabilities and Net Worth Stock Shares $ 420 ____ ____ Reserves 25 ____ ____ Property 300 ____ ____ Securities 100 ____ ____ Loans 100 ____ _____ Demand Deposits 105 ____ ____
Use the following balance sheet for the ABC National Bank in answering the next question(s). Assume the required reserve ratio is 20 percent. Assets Liabilities and net worth Reserves$27,000 Checkable deposits$110,000 Loans50,000 Capital stock200,000 Securities33,000 Property200,000
10
Suppose that there are a total of 9 other banks in the economy and that the balance sheet for the whole banking system is presented in the table below. Assume that each of the other banks also has a target reserve ratio of 10%. Assets (1 all) Liabilities/ Equity 50 V Reserves Loans Securities Fixed assets Total 3 E D $ 4 $1,200,000 6,800,000 2,500,000 3,500,000 $14,000,000 f. In the table above, show the balance sheet of this banking system when it is fully loaned up. Use columns (1 all). g. The increase in the money supply as a result of all the banks becoming fully loaned up is $[ R % 5 € 6 T $ G H 7 Demand deposits Shareholders' equity Total $14,000,000 F12 Scr Lk (1 all) $ PrtSc Pause Break 66 Insert
11
Refer to the balance sheet below for Glitterton Bank: Liabilities $2000.00 Deposits $2300.00 Assets Loans Securities $3500.00 Reserves $300.00 Calculate Glitterton Bank's net worth: $
What is the total assets of Third National Bank? The figures in the table below are for the Third National Bank. All figures are in thousands of dollars. Assets Liabilities and Net Worth Stock Shares $ 420 $ _____ $ _____ Reserves 25 _____ _____ Property 300 ____ _____ Securities 100 ____ _____ Loans 100 ____ _____ Demand Deposits 105 ____ _____
A commercial bank has checkable-deposit liabilities of $500,000, reserves of $150,000, and a required reserve ratio of 20 percent. The amount by which a single commercial bank and the amount by which the banking system can increase loans are respectively: Select one: a. $30,000 and $150,000 b. $50,000 and $250,000 c. $50,000 and $500,000 d. $100,000 and $500,000
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Use the following balance sheet for the ABC National Bank in answering the next question(s). Assume the required reserve ratio is 20 percent. Assets Liabilities and net worth Reserves$27,000 Checkable deposits$110,000 Loans50,000 Capital stock200,000 Securities33,000 Property200,000