LAST CHANCE BANK OF TOMBSTONE ASSETS cash in the vault: deposits at Fed US treasury bonds: loans: Building: TOTALS: $900,000 $100,000 $300,000 $3,700,000 $2,000,000 $7,000,000 - BALANCE SHEET LIABILITIES & demand deposits: capital stock: TOTALS: If the required reserve ratio is 5%, what is the level of excess reserves this bank holds? "$900,000" O "$1,000,000" O "$750,000" O "$500,000" O "$400,000" NET WORTH $5,000,000 $2,000,000 $7,000,000

LAST CHANCE BANK OF TOMBSTONE ASSETS cash in the vault: deposits at Fed US treasury bonds: loans: Building: TOTALS: $900,000 $100,000 $300,000 $3,700,000 $2,000,000 $7,000,000 - BALANCE SHEET LIABILITIES & demand deposits: capital stock: TOTALS: If the required reserve ratio is 5%, what is the level of excess reserves this bank holds? "$900,000" O "$1,000,000" O "$750,000" O "$500,000" O "$400,000" NET WORTH $5,000,000 $2,000,000 $7,000,000

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

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Similar questions

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O clpccd.instructure.com SA Quiz: 18.10 Final Exam (. E Report - Google Docs m morena M Inbox (18,303) - randyth.. Research Paper Table 1 Balance Sheet of the First National Bank Assets Liabilities ments Reserves $ 3,275 Deposit $16,500 ns nts Loans $13,225 utóring Total Assets $16,500 Total Liabilities $16,500 Refer to Table 1. Assume that this is the balance sheet of the First National Bank, If the Federal Reserves decreases the reserve requirement from 9% to 5%. This bank's excess reserves will change by: O $660 $1,790 O $2,450 $330 O $495 80 F2 DII DD F3 F4 F5 F6 F7 F8 F9 @ #
Northern Bank: Balance Sheet Assets Liabilities Deposits Capital $7,000 $1,000 $8,000 Reserves $420 $7,580 $8.000 Loans Refer to the table above. Assume that Northern Bank's target reserve ratio is 8 percent. In order to achieve its target reserve ratio, Northern Bank must and O A. increase its reserves by $140; decrease its deposits by $140 O B. increase its reserves by $280; increase its loans by $380 OC. increase its reserves by $280; decrease its deposits by $280 O D. increase its reserves by $140; decrease its loans by $140 O E. not change its reserves; not change its deposits