8. A bank has an 8 percent reserve requirement, $10.000 in deposits, and has loaned out all itcan, given the reserve requirement.a. It has S80 in reserves and $9,920 in lonnsblt has S800 in reserves and $9.200 in loonse. It has S1.250 in reserves and $8,750 in loans.d. It has $8,000 in reserves and $2,000 in loans.

We have given rr=0.08 and deposits = 10,000.

8.A bank has an 8 percent reserve requirement, S10.000 in deposits, and has loaned out all it can, given the reserve requirement. a. It has $80 in reserves and $9,920 in lonns blthas S800 in reserves and $9.200 in loons e It has S1.250 in reserves and $8,750 in loans. d. It has $8,000 in reserves and $2,000 in loans.

8.A bank has an 8 percent reserve requirement, S10.000 in deposits, and has loaned out all it can, given the reserve requirement. a. It has $80 in reserves and $9,920 in lonns blthas S800 in reserves and $9.200 in loons e It has S1.250 in reserves and $8,750 in loans. d. It has $8,000 in reserves and $2,000 in loans.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Banking And The Money Supply

Section: Chapter Questions

Problem 2.3P

See similar textbooks

Similar questions

How much money do you have to put into a bank account that pays 10% interest compounded annually to have 10,000 in ten years?
A bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can, given the reserve requirement. a. It has $80 in reserves and $9,920 in loans. b. It has $800 in reserves and $9,200 in loans. c. It has $1,250 in reserves and $8,750 in loans. d. It has $8,000 in reserves and $2,000 in loans.
A bank has a 5 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement. Select one: a.None of them. b.lt has $1,000 in reserves and $3,000 in loans. c.lt has $20 in reserves and $4,980 in loans. d.It has $200 in reserves and $4,800 in loans.
Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 44Deposits 255Loans 155 Securities 51Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 6%(Give answers to 2 decimal places as needed)
Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 32Deposits 205Loans 150 Securities 53Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)
1. Banks can increase their return on equity by a. increasing interest rates on loans; a decrease b. increasing interest rates on loans; an increase c. increasing interest rates on loans; no change d. decreasing their capital; a decrease which results in in risk. ba ada ot ont lo vinng cour bes bloa
1. You deposit $100 of currency into your account. Explain what happens to reserves , checkabledeposits, and monetary base? 2. Explain what the shadow banking system is and how it works. 3. Your bank has the following balance sheet:Assets LiabilitiesReserves $70 million Checkable deposits $200 millionSecurities $50 millionLoans $130 million Bank capital $50 millionIf the required reserve ratio is 10%, what actions should the bank manager take if there is anunexpected deposit outflow of $50 million? Explain your answer. 4. Explain and demonstrate graphically that if the central bank pursues targeting a monetaryaggregate, it is likely to lose control over the interest rate. 5. In the market for reserves, the federal funds rate is equal to the interest rate paid on excessreserves. Explain and demonstrate graphically the effect of an open market sale on the federalfunds rate.
7. The consumer's average money holdings decreasing with the time spent between bank withdrawals. A. True B. False Discuss ges ron
2. Assets Liabilities Total Reserves 2,000,000 Transaction Deposits Required Excess Govt. Sec. 2,225,000 Loans Total Assets Total Liabilities a. Assume the required reserve rate is 20%. What are required reserves for this bank? b. What are transactions deposits and total liabilities for the bank? c. How much more money can this bank loan out at this time? Wells Fargo Bank 750,000
Corry has an income of $80,000 that he is willing to spend over a year. If his bank account's interest rate is 3.05% and the cost associated for him to visit the bank is $5.00. What is Corry's average money holding? O a. $488.00 O b. $2,560.74 O c. $5,000.00O O d. $16.00 O Type here to search 24
Initially a bank has a required réserve ratio of 20 percent and no excess reserves. If $5,000 is deposited into the bank, theninitially. ceteris paribus, A . Required reserves will increase by $5,000.B .This bank can increase its loans by S5,000C .This bank can increase its loans by $4,000.D .Total reserves will increase by $4,000.
Table 1 First Charter Bank Assets Liabilities Reserves $800 $400 Deposits Net Worth Loans Total $1.200 Total Refer to Table 1. The required reserve ratio is 25%. If the First Charter Bank is meeting its reserve requirement and has no excess reserves, its loans equal Lütfen birini seçin: O A. $600 O B. $900 OC $1,000 O D. $1,800 O E $1400