Question

TABLE B ASSETS LIABILITIES Reserves Required $ 120,000 Demand Deposits $2,000,000 Excess ? Total Reserves $...

TABLE B

ASSETS

LIABILITIES

Reserves Required $ 120,000

Demand Deposits $2,000,000

Excess ?

Total Reserves $ 225,000

Loans and Securities $1,775,000

Total Assets $2,000,000

  Total Liabilities $2,000,000

Please complete Table B.

38. In Table B, suppose an individual deposits $50,000 into a demand deposit account. The bank will have

A) excess reserves $152,000

B) a decrease in liabilities of $50,000

C) excess reserves of $47,000

D) excess reserves of $50,000

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
TABLE C ASSETS LIABILITIES REQUIRED RESERVES $144,000 DEMAND DEPOSITS $3,600,000 EXCESS RESERVES ? TOTAL RESERVES $150,000...
TABLE C ASSETS LIABILITIES REQUIRED RESERVES $144,000 DEMAND DEPOSITS $3,600,000 EXCESS RESERVES ? TOTAL RESERVES $150,000 GOVT. SECURITIES $550,000 LOANS $2,900,000 TOTAL ASSETS $3,600,000 TOTAL LIABILITIES $3,600,000 Please complete Table C. 45. If the Fed purchases $50,000 in securities from the bank, the bank could lend out? A) $50,000 B) $56,000 C) nothing it will have a reserve deficiency D) $125,000 46.  If the Fed sells $50,000 in securities to this bank, the money supply will: A) expand by $1,000,000 B)...
TABLE C ASSETS LIABILITIES REQUIRED RESERVES $144,000 DEMAND DEPOSITS $3,600,000 EXCESS RESERVES ? TOTAL RESERVES $150,000...
TABLE C ASSETS LIABILITIES REQUIRED RESERVES $144,000 DEMAND DEPOSITS $3,600,000 EXCESS RESERVES ? TOTAL RESERVES $150,000 GOVT. SECURITIES $550,000 LOANS $2,900,000 TOTAL ASSETS $3,600,000 TOTAL LIABILITIES $3,600,000 Please complete Table C. 47. If the Fed increased the reserve requirement to 9%, this bank would A) have excess reserves of $10,000 B) have zero excess reserves C) have a deficiency of $180,000 D) have a deficiency of $174,000
TABLE A: ASSETS LIABILITIES Required Reserves $288,000 Demand Deposits $1,800,000 Excess 12,000 Loans and Securities $1,500,000...
TABLE A: ASSETS LIABILITIES Required Reserves $288,000 Demand Deposits $1,800,000 Excess 12,000 Loans and Securities $1,500,000 Total Assets $1,800,000 Total Liabilities $1,800,000 31. The money multiplier for the bank in TABLE A is A) 5. B) 10 C) 8.33 D) 6.25 32. If someone withdraws $12,000 from TABLE A, the bank will: A) have zero excess reserves. B) have excess reserves of $1,920. C) have a reserve deficiency of $1,000 D) have excess reserves of $1000
TABLE A: ASSETS LIABILITIES Required Reserves $288,000 Demand Deposits $1,800,000 Excess 12,000 Loans and Securities $1,500,000...
TABLE A: ASSETS LIABILITIES Required Reserves $288,000 Demand Deposits $1,800,000 Excess 12,000 Loans and Securities $1,500,000 Total Assets $1,800,000 Total Liabilities $1,800,000 29. The required reserve ratio for the bank in Table A is A) 18 percent. ​​B) 10 percent. C) 12 percent.​ ​D) 16 percent. 30. Refer to Table A. The Fed would have to increase the reserve requirement to what percentage for this bank to have no excess reserves? A) 20% B) 18.2% C) 12.4% D) 16.67% 31....
TABLE D: ASSETS LIABILITIES Reserves $840,000 Deposits $12 million Loans $11.160 million Total $12 million Total...
TABLE D: ASSETS LIABILITIES Reserves $840,000 Deposits $12 million Loans $11.160 million Total $12 million Total $12 million Please complete Table D. 50. Table D Bank could make additional loans of $120,000, if the required reserve ratio were A) 4%. B) 8%. C) 5%. D) 6%. 51. (EXTRA POINT)  The money multiplier for this bank, when it has zero excess reserves is: A. 20 B) 16.67 C) 14.29 D) 12.5
Assets Liabilities Reserves 250 Deposits   Required __     Transaction (checking) deposits 1000   Excess __      Savings deposits 3000...
Assets Liabilities Reserves 250 Deposits   Required __     Transaction (checking) deposits 1000   Excess __      Savings deposits 3000 Loans    Money Market deposits 500     Variable rate loans 750 Time deposits (CDs)     Short-term loans 1600     Fixed rate 500    Long-term fixed rate loans    2000     Variable rate 100 Securities Borrowing    Short-term securities 500     Fed funds borrowed 0    Long-term securities 600 Refer to the bank balance sheet above. Calculate the gap between interest-sensitive assets and interest sensitive liabilities. Answer in millions and do not enter a $...
Assets Liabilities Reserves 250 Deposits   Required __     Transaction (checking) deposits 1000   Excess __      Savings deposits 3000...
Assets Liabilities Reserves 250 Deposits   Required __     Transaction (checking) deposits 1000   Excess __      Savings deposits 3000 Loans    Money Market deposits 500     Variable rate loans 750 Time deposits (CDs)     Short-term loans 1600     Fixed rate 500    Long-term fixed rate loans    2000     Variable rate 100 Securities Borrowing    Short-term securities 500     Fed funds borrowed 0    Long-term securities 600 Refer to the bank balance sheet above. Suppose values are in millions of dollars. Assume the reserve requirement is not tiered and is set at 10%....
Assets Liabilities Reserves 250 Deposits   Required __     Transaction (checking) deposits 1000   Excess __      Savings deposits 3000...
Assets Liabilities Reserves 250 Deposits   Required __     Transaction (checking) deposits 1000   Excess __      Savings deposits 3000 Loans    Money Market deposits 500     Variable rate loans 750 Time deposits (CDs)     Short-term loans 1600     Fixed rate 500    Long-term fixed rate loans    2000     Variable rate 100 Securities Borrowing    Short-term securities 500     Fed funds borrowed 0    Long-term securities 600 Refer to the bank balance sheet above. Suppose values are in millions of dollars. Suppose return on assets (ROA) is 1.2%. Suppose bank owners convince bank...
Assets Liabilities Reserves $50,000 Deposits $200,000 Loans $150,000 Using the table above, answer the following questions:...
Assets Liabilities Reserves $50,000 Deposits $200,000 Loans $150,000 Using the table above, answer the following questions: @ What is the reserve ratio of this bank? @ If someone made a $10,000 deposit and the bank wanted to maintain this reserve ration, what actions would it take? What would this new t-account look like (draw below)? @ Why can’t a bank lend out all of its reserves? @ How does the Fed increase and decrease the money supply through open market...
(3.) Consider the following bank balance sheet: Assets (in millions) Liabilities (in millions) Reserves $50 Demand...
(3.) Consider the following bank balance sheet: Assets (in millions) Liabilities (in millions) Reserves $50 Demand Deposits $200 Securities $50 Equity (in millions) Loans $150 Equity Capital $50 (a.) Suppose that this bank is subject to a 10.00% required reserve ratio. Is this bank holding any excess reserves? If so, how much? (b.) Suppose that this bank experiences a $35 million deposit out?ow. By how much is this bank short of its reserve requirements?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT