Which of the following is classified as a bank function? nstructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Acting as an intermediary ? Acting as a lender of last resort 7 Providing liquidity ? Diversifying risk
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- If a bank has total deposits of $7,200 and reserves of $1,600: Instructions: Round to the nearest whole number. (a) What is its current reserve ratio? % (b) How large is its loan portfolio (outstanding loans)? %This is not a writing assignment, this is a multiple-choice question Which of the below statements regarding cryptocurrencies is NOT mentioned or suggested as factors that give cryptocurrencies and advantage over traditional currencies? what cryptocurrencies are, and the advantages and disadvantages of cryptocurrencies. Choose as the correct answer only the statement that is NOT suggested Group of answer choices The value of cryptocurrencies is more stable and less volatile than the international exchange rate of the U.S. dollar. Easy international business transactions because digital coins can overcome any border obstacle much faster and more easily than the traditional currency. Its reduced cost for shipments sent abroad would be a consideration for free flowing global transactions and trade.The central bank buys $10,000 worth of bonds in the open market from Elaine, who deposits the proceeds in her checking account at MSM Bank. The required reserve ratio is 5%. (a) What is the amount by which MSM Bank’s liabilities have changed? Explain. (b) Calculate the change in required reserves for MSM Bank. Show your work. (c) What is the dollar value of the maximum amount of new loans MSM Bank can initially make as a result of Elaine’s deposit? Explain. (d) Based on the central bank’s open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system. Show your work. (e) How will the change in the money supply in part (d) affect aggregate demand and the price level in the short run? Explain.
- money is a concept has a certain value at a point in time. true or falseWhat would be the first loan in the table if the reserve ratio is 10%? A/Loans 800, total Deposit 800 B/ Loans 1000, total Deposit 1000 C/ Loans 900, total Deposit 1900 D/ Loans 1000, total Deposit 2000Differentiate between deposit taking and non-deposit taking financial institutions with one real example for each which is seen in your day to day life.
- Research and identify two cryptocurrencies, how they have evolved in recent years and how might you expect them to evolve further in the future. Discuss whether these means of “payment” fully fulfil all three functions of “money.” (Your answer should be 600 words ±10%)Q (B Ashley deposits $50,000 in a commercial bank that is required to retain 20% in reserve. The deposit increases the lending capacity of the bank by: Group of answer choices $10,000. $50,000. $5,000. $40,000.The ratio of cash and other assets that can be readily turned into cash to the total of deposits is the A) liquidity ratio. B) money multiplier. C) credit limit. D) none of the above
- (b) Mahsuri Bank which is one of the local banks in your community has the following balance sheet (in billions of RM) as follows: Liabilities 3,000 Deposits 1,350 Assets RM billions RM billions Reserves 5,000 Government securities Loans 650 i. If the required reserve ratio is 0.25 or 25 percent, how much in excess reserves does the bank hold? ii. Determine the maximum amount by which the bank can expand its loan? If the bank makes the loans in (ii), show the immediate impact on the bank's balance sheet. ii.one method to spend more money is to deduct an amount automatically from your salary in a direct deposit system true or falseIf a Bank accepts a deposit of $1,000 and the required reserve ratio is 20%, how much can the Bank lend to a potential borrower? A) $900 B) $800 C) $600 D) $400