What is a​ bank's balancing​ act? A bank must balance​ _______ against​ _______.     A. security for​ depositors; profit for stockholders   B. the quantity of M1 that it holds​; the quantity of M2 that it holds   C. federal funds rate​; long-term deposits   D. cash assets​; securities   E. required reserves​; low-risk loans

Suppose that the following information describes the banking system in Belarus. Currency = $940 billion Checking Deposits = $1,475 billion Total Reserves = S198 billion Required Reserves = $177 billion (a) Calculate the level of the monetary base (MB) in the banking system of Belarus. (b) Given the above data calculate the money multiplier (m). Round vour answer to 2 decimal places.

What is the ratio of reserves to deposits that a bank finds prudent to hold?   Describe the situation in which a bank has $10 million in actual reserves and $8 million in desired reserves. The ratio of reserves to deposits that a bank finds prudent to hold is its _______.   When a bank has $10 million in actual reserves and $8 million in desired reserves, it has _______.     A. desired deposit ratio; a shortage of deposits   B. desired reserve ratio; surplus reserves   C. desired reserve ratio; insufficient reserves   D. planned reserve ratio; a currency drain

Celine, another manager at a different branch of MillerBank in a different region of the country, faces a reserve requirement of 10%. She has excess reserves 0f $1000. What’s the maximum amount that she could increase the money supply?   a.500 dollars b.1000 dollars c.10000 dollars d.100 dollars e.2000 dollars

The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 10 percent and there is no currency drain. Calculate the bank's excess reserves. >>> Answer to 2 decimal places. Assets Reserves at the Fed Cash in vault Securities Loans The banks' excess reserves are $☐ million. Liabilities (millions of dollars) 2535 20 Checkable deposits 15 Savings deposits 40 95

Jamie made a cash deposit to her checking account. This resulted in an increase in the money supply of $23,000. The reserve requirement is 4%, and all banks keep excess reserves equal to 4% of checking deposits. What was the amount of Jamie's deposit? A. $1.840 B. $2,000 C. $920 D. $1,000

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1. Subject to the approval of the board of Governors, the decision of choosing the president of a district Federal Reserve bank is made by: A. All 9 district bankers B. The 6 district bank directors elected by the member banks C. 3 district bank directors who are professional bankers D. Class B and Class C directors 2. Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 40%, and the excess reserve ratio = 0, a decrease in the required reserve ratio to 5% causes the M1 money multiplier to everything else held constant. A. Increase from 2.8 to 3.11 B. Decrease from 3.11 to 2.8 C. Increase from 2 to 2.22 D. Decrease from 2.22 to 2 %3D

1.What is the money multiplier if the target reserve ratio ofbanks is 4%? 2. If the target reserve ratio for a bank is 5%, deposits are $1billion, and loans are $800 million, what are the targetreserves?$50 million•80%$40 million$200 million3. Which measurement of the money in Canada will be the largest? 4. Is there more money or currency in Canada?5.

If the Reserve Bank of Australia sells financial securities, this: a. decreases bank reserves, increases interest rates, and discourages banks to make more loans. b. decreases bank reserves, increases interest rates, and encourages banks to make more loans. c. increases bank reserves, causes banks to increase their loans, and increases interest rates. d. increases reserves, causes banks to reduce their loans, and decreases interest rates