Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 27, Problem 4MCQ
To determine
To identify:
The option that correctly states the components included in assets of commercial banks.
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BALANCE SHEET OF BANK A (S IN MILLIONS)
ASSETS
LIABILITIES and NET WORTH
Reserves
(Cash/Reserves at Fed)
550
Demand Deposits
$100
Losns
20
Govt. Securities
90
Net Worth (Owners' Equity)
What is the net worth of this bank?
2.
If the required reserve is 10%, what is the amount of REQUIRED RESERVES that this bank must bold?
3.
What then is the mount of EXCESS RESERVES that this bank is now holding?
How much does this bank have available for NEW LOANS?
5.
If the required reserve is increased to 20%, whal is the amount of REQUIRED RESERVES that this bank
must bold?
When banks have deposits in checking accounts with the Fed, these deposits for the bank are __________________ of the commercial bank
a.
Liabilities
b.
Assets
c.
Net Worth
d.
Equity
QUESTION 8
Which is the riskier action for a bank?
A.
Making foreign exchange trades on behalf of customers
B.
Making foreign exchange trades with bank assets
Chapter 27 Solutions
Foundations of Economics (8th Edition)
Ch. 27 - Prob. 1SPPACh. 27 - Prob. 2SPPACh. 27 - Prob. 3SPPACh. 27 - Prob. 4SPPACh. 27 - Prob. 5SPPACh. 27 - Prob. 6SPPACh. 27 - Prob. 7SPPACh. 27 - Prob. 8SPPACh. 27 - Prob. 9SPPACh. 27 - Prob. 10SPPA
Ch. 27 - Prob. 11SPPACh. 27 - Prob. 12SPPACh. 27 - Prob. 13SPPACh. 27 - Prob. 1IAPACh. 27 - Prob. 2IAPACh. 27 - Prob. 3IAPACh. 27 - Prob. 4IAPACh. 27 - Prob. 5IAPACh. 27 - Prob. 6IAPACh. 27 - Prob. 7IAPACh. 27 - Prob. 8IAPACh. 27 - Prob. 9IAPACh. 27 - Prob. 10IAPACh. 27 - Prob. 11IAPACh. 27 - Prob. 1MCQCh. 27 - Prob. 2MCQCh. 27 - Prob. 3MCQCh. 27 - Prob. 4MCQCh. 27 - Prob. 5MCQCh. 27 - Prob. 6MCQCh. 27 - Prob. 7MCQCh. 27 - Prob. 8MCQ
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