ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Zanadu Federal Bank has rescrves of $55 million and checkable deposits of $200 million. The current required
rescrve ratio imposed by the Fcderal Reserve is 25%. Zanaduian National Bank also has $45 million in sccuritics
and $100 million in loans.
A.
What are Zanadau Federal Bank's required reserves?.
If the Fed buys $5 million in sccuritics from Zanadu Federal Bank what willI happen to the bank's
balance sheet Please show your work.
B.
C.
What is the monctary multiplicr? By how much did the checkable deposits cxpand or contract due to the
Federal Reserve buying securitics from Zanadu Federal Bank?
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Transcribed Image Text:Zanadu Federal Bank has rescrves of $55 million and checkable deposits of $200 million. The current required rescrve ratio imposed by the Fcderal Reserve is 25%. Zanaduian National Bank also has $45 million in sccuritics and $100 million in loans. A. What are Zanadau Federal Bank's required reserves?. If the Fed buys $5 million in sccuritics from Zanadu Federal Bank what willI happen to the bank's balance sheet Please show your work. B. C. What is the monctary multiplicr? By how much did the checkable deposits cxpand or contract due to the Federal Reserve buying securitics from Zanadu Federal Bank?
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