39. Consider a fractional-reserve banking system in which an initial deposit of $1,000 can generate up to $4,000 in money. What is the reserve ratio? (A) 4 percent. (В) 5 рercent. (C) 25 percent. (D) 75 percent
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Q: arah deposited in her checking account in bank A 10 million Dirhams. If the bank has zero dirhams in…
A: deposit Amount = 10 million Reserve ratio = 15%
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A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: 1. In answering the question, you should emphasize the line of reasoning that generated your…
A:
Q: 5- What is the money multiplier when the required reserve ratio is a. 2 percent? b. 4 percent? c. 6…
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A: A financial institution is an institution that deals with monetary and financial transactions. These…
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A: Require reserves are the reserves that commercial banks hold as per the requirement of central bank.
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A: To find : Steps taken by RBI to control credit.
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A: Answer is given Below
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A: Answer:- (b) $250,000.
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A: Here we calculate the following terms which are as follow-
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- How can a bank end up with negative net worth?Should banks have to hold 100 of their deposits? Why or why not?2-A bank has deposits of $ 6 000 000 , its total actual reserves are $1 200 000 and the legal reserve ratio is 0.12 . (a) What is the amount of reserves ? (b) What is the amount of excess reserves ? (c) If the reserve ratio changes to 0.10 what would be the effect on reserves and total actual reserves ,amount of excess reserves remaining the same ?
- If a bank has total deposits of $7,200 and reserves of $1,600: Instructions: Round to the nearest whole number. (a) What is its current reserve ratio? % (b) How large is its loan portfolio (outstanding loans)? %(b) Mahsuri Bank which is one of the local banks in your community has the following balance sheet (in billions of RM) as follows: Liabilities 3,000 Deposits 1,350 Assets RM billions RM billions Reserves 5,000 Government securities Loans 650 i. If the required reserve ratio is 0.25 or 25 percent, how much in excess reserves does the bank hold? ii. Determine the maximum amount by which the bank can expand its loan? If the bank makes the loans in (ii), show the immediate impact on the bank's balance sheet. ii.24. Assuming the required reserve ratio is 10%, how much can this bank lend? a) $200,000 b) $300,000 c) $400,000 d) $550,000 e) $3,000,000
- 11. Currently, deposits are insured by the FDIC up to ___________ per depositor per bank. Question 11 options: a) $1,000,000. b) $250,000. c) $10,000. d) $100,000.Part 1. The accompanying table gives data for a commercial bank or thrift. Scenarios Reserve Checkable Actual Excess Reserves Requirement (%) Deposits Reserves W $100,000 $10,000 $0 (1) (2) (3) 20,000 12,000 12 200,000 Y 8,000 20 300,000 70,000 (4) Fill-up the values for W, X, Y and Z1. Which of the following is an example of money as a unit of account? (A) A monthly credit card statement (B) A money market account (C) A checking account (D) Pricing of items in a grocery store (E) Direct deposit fint money?
- The central bank buys worth of bonds in the open market from Joe, who deposits the proceedsin his checking account at Bank. The required reserve ratio is .(a) What is the amount by which Bank’s liabilities have changed? Explain.(b) Calculate the change in required reserves for Bank. Show your work.(c) What is the dollar value of the maximum amount of new loans Bank can initially make as aresult of Joe’s deposit? Explain.(d) Based on the central bank’s open-market purchase of bonds, calculate the maximum amount bywhich the money supply can change throughout the banking system. Show your work.(e) How will the change in the money supply in part (d) affect aggregate demand and the price level inthe short run? Explain16. A debit card differs from a credit card in that Question 16 options: a) a credit card is a loan while for a debit card purchase, payment is made immediately. b) a debit card is a loan while for a credit card purchase, payment is made immediately. c) a debit card is a long-term loan while a credit card is a short-term loan. d) a credit card is a long-term loan while a debit card is a short-term loan.Table 2 First National Bank Assets Liabilities and Owners' Equity Reserves $1,200 Deposits $9,000 Loans $8,000 Debt $800 Short-term securities $800 Capital (owners' equity) $200 Refer to Table 2. The required reserve ratio is 6 percent and First National Bank sells $150 of its short-term securi to the Federal Reserve. This action will increase First National's reserves by S150. Its excess reserves are $240. decrease First National's reserves by $150. Its excess reserves are $0. increase First National's reserves by $150. Its excess reserves increase by $150. increase First National's reserves by $150. Its total reserves increase by $150. both c and d above