The accompanying table gives data for a commercial bank or thrift. When the legal reserve ratio is 20 percent, the money - creating potential of the entire banking system is $6,000. $8,000. $4,000. $10,000.

A bank has outstanding loans of $7,500, reserves of $2,500, and deposit liabilities of $10,000.    If the required reserve ratio is 10%, this bank: A.    Is holding excess reserves of $1,000 B.    Is in a position to make a new loan for $1,500 C.    Is in a position to make a new loan for $2,500 D.    Has less reserves than required

Distinguish between legally required reserves and excess reserves.

Bank deposit creation is limited by reserve requirements. True or False

Suppose a credit union has checkable deposits of $500,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $5,000, then its actual reserves are Multiple Choice   $55,000.   $45,000.   $5,000.   $50,000.

If currency ratio is 0.15, required reserves ratio is 0.10, excess reserves ratio is 0.05, banks reduce their discount loans by $270,000, what happens to reserves, the monetary base, and the money supply after the change has worked its way through the entire banking system?

When you open a checking account at Bank of America, Bank of America has more reserves and more excess reserves. has more reserves, but excess reserves remain unchanged. has more deposits and less in excess reserves. has more deposits, but excess reserves remain unchanged.

Which bank assets would NOT satisfy the definition of a bank reserve? Treasury bonds that can be traded on the open market cash kept in its main vault cash kept in its ATMs money deposited in an account at the regional Federal Reserve Bank

The table below is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 2.5%. Assets Reserves Loans Securities Fixed assets Total $160,000 $ 5,226,500 675,000 688,500 6,750,000 Liabilities/Equity Demand Deposits Shareholders equity Total $6,075,000 $ 675,000 6,750,000 a. The amount of excess reserves is $ b. The maximum amount that loans and deposits could be increased by is $ c. Assume that the system becomes fully loaned up. Show the new balance sheet in the table above. d. Now that the system is fully loaned up, the money supply will have increased by $

Bank X has a required reserve ratio of 0.2, total reserves are $70 million, and deposits are $200 million. How much in excess reserves do they have? How much could the money supply increase?