The table gives information about the commercial banks in Zap. Smillions Item Reserves If banks have no excess reserves, what is the banks' desired 300 reserve ratio? Loans The desired reserve ratio is percent. >> Answer to 1 decimal place. Deposits Total assets 1,500 2,500 3,600

Match the term with the definition: What the bank is holding - or it's reserve deposit A. Primary Reserve Occurs if the bank holds more than the required minimum on reserve B. Secondary Reserve The minimum amount of vault cash and deposits at the Federal Reserve district bank that must be held C. Required Reserve A bank's vault cash and it's deposits at the Federal Reserve D. Actual Reserves Treasury bills, notes, certificates, and bonds that will mature in less than a year Excess Reserves

Assets Liabilities Reserve 200 Deposits 1000 Loan 800 Total 1000 Total 1000 1. Assuming the bank does not hold any excess reserve, what is the required reserve ratio? 2. What is The value of deposit expansion multiplier ? Note : show your calculations В I !

The State Bank of Oswald has cash reserves of $5,000, loans of $495,000, and deposits of $500,000.  The bank maintains a reserve requirement of 1 percent.  Calculate (show work) this bank’s excess reserves and write the answer below.

Suppose the reserve requirement is 15%, banks hold no excess reserves, and there are no additional currency holdings. Find the change in deposits, reserves, and loans for each bank in the following scenario. Instructions: Round your answers to two decimal places. a. Henry receives a check for $10,000 from selling his car and deposits the check Into Tennessee Bank. Use the table below to show the change in assets and liabilities at Tennessee Bank resulting from this transaction. Assets Change in Reserves: $ Change in Loans: $ b. Suppose that Julle gets a loan from Tennessee Bank in the amount from the "Loans" cell in the table in part a, and uses it to buy some tools from Todd. Todd deposits the money from Julle Into Kentucky Bank. Use the table below to show the change in assets and llabilities at Kentucky Bank resulting from this transaction. Assets Change in Reserves: $ Change in Loans: $ Liabilities Change in Deposits: $ Assets Change in Reserves: $ Change in Loans: $ Liabilities…

i. If the banks hold no excess reserves, compute their desired reserve ratio ii. Assume household and firm hold USD 30 billion in the bank notes and there are no coins. Calculate the currency drain ratio. iii. Calculate the ZAP money multiplier.

please explain why the answer is 25 million

Money Market Mutual Fund Balances Held by Businesses $ 110 Money Market Mutual Fund Balances Held by Individuals 230 Currency in Banks 20 Currency in Circulation 70 Savings Deposits 60 Large-denominated ($100,000 or more) Time Deposits 190 Small-denominated ($100,000 or less) Time Deposits 90 Checkable Deposits 80 Refer to the table. Money supply M2 for this economy is

Use the following values in this T-account to answer the questios below: (use 2 decimal places for any answer that have decimals) ASSETS Reserves Loans Gov. Bonds $1,000 Stocks $1,250 $750 LIABILITIES $10,000 www 1. Assume that the bank only keeps Required Reserves. What is the reserve requirement in this economy? Blank 1% 2. Based on the information provided, how much money would be available for investments by this bank? Blank 2 3. Based on the information provided, how much money does this bank hold in form of loans? Blank 3

Table 29-2. An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $9,250. The T-account of the bank is shown below. 24. Reserves Loans Assets $750 9,250 Liabilities Deposits $10,000 Refer to Table 29-2. The bank's reserve ratio is a. 7.50 percent. b. 8.12 percent. C. 92.50 percent. d. 100 percent. 25. Refer to Table 29-2. If all banks in the economy have the same reserve ratio as this bank, then the value of the economy's money multiplier is a. 1.33. b. 10.00. C. 10.81. d. 13.33. 26. Refer to Table 29-2. If all banks in the economy have the same reserve ratio as this bank, then an increase in reserves of $150 for this bank has the potential to increase deposits for all banks by a. $866.67. b. $1,666.67. C. $2,000.00. d. an infinite amount.