4. If a bank with $500 in deposits is holding reserves of $60 when the reserve ratio is 10%, the bank has excess reserves of $ Type your answer here 5. If a bank with $500 in deposits is holding reserves of $60 when the reserve ratio is 10%, the bank can make a loan of $ Type your answer here 6. If a bank has reserves of $75 and excess reserves are equal to $0 when the reserve ratio is 10%, the bank has deposits of $ Type your answer here

4. If a bank with $500 in deposits is holding reserves of $60 when the reserve ratio is 10%, the bank has excess reserves of $ Type your answer here 5. If a bank with $500 in deposits is holding reserves of $60 when the reserve ratio is 10%, the bank can make a loan of $ Type your answer here 6. If a bank has reserves of $75 and excess reserves are equal to $0 when the reserve ratio is 10%, the bank has deposits of $ Type your answer here

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter19: Money Creation

Section: Chapter Questions

Problem 18SQ

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Similar questions

1. If the reserve ratio is 10%, a bank with $1,000 in deposits has required reserves of $ Type your answer here 2. If a bank is holding required reserves of $100 to support $500 in deposits, the reserve ratio is Type your answer here 3. If a bank with $500 in deposits is holding reserves of $50 when the reserve ratio is 10%, the bank has excess reserves of $ %. Type your answer here
6. If a bank has reserves of $75 and excess reserves are equal to $0 when the reserve ratio is 10%, the bank has deposits of $
Reserves Loans Assets O 16.7 percent. 15.7 percent. 6.0 percent. Bank of Pleasantville Refer to Table 29-4. The Bank of Pleasantville's reserve ratio is 6.4 percent. $3,000 Deposits 47,000 Liabilities $50,000
5 A bank has $210,000 in excess reserves and the required reserve ratio is 25 percent. This means the bank could have total reserves. $80,000, $10,000 $100,000, $50,000 $280,000, $70,000 $50.000, $30.000 6 If a bank's excess reserve is zero and the required reserve ratio is increased, which of the following will happen? Banks will begin to extend more credit. Banks will have positive excess reserves. Banks will begin to extend more loans. Banks will have a reserve deficiency in checkable deposit liabilities and
18. Refer to Table 13.2. The required reserve ratio is 20%. If the First Charter Bank ismeeting its reserve requirement and has no excess reserves, its loans equal:a) $710b) $460c) $550d) $760
What is the risk if a bank does not diversify its loans?
How do you calculate a banks net worth?
Explain why the money listed under assets on a bank balance sheet may not actually be in the bank?
Explain the difference between how you would characterize bank deposits and loans as assets and liabilities on your own personal balance sheet and how a bank would characterize deposits and loans as assets and liabilities on its balance sheet.
Your bank has the following balance sheet: Assets Liabilities Checkable Reserves $90 million $380 million deposits $130 Securities million Loans $200 million Bank capital $40 million If the required reserve ratio is 20%, what will be the size of this bank (as measured by its total assets or liabilities) after $20 million deposit outflow if it just meets reserve deficiency by taking out a discount loan from the Federal Reserve? $402 million $400 million. OOOO $420 million. $412 million.
8. If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is A) $30,000. B) $25,000. C) $20,000. D) $10,000.
3. Refer to the T account of First National Bank First National Bank T Account Assets Liabilities Reserves $2,500 Deposits 10,000 Loans $7,500 Based on the table: Calculate the reserve ratio for this bank Calculate the money multiplier for this bank Assuming that this bank has a $500 excess reserve then how much money can be created with that amount?