1. Compute the additional loan the commercial bank can extend on a deposit of P250, 000 when it is required to keep a 20% reserve. Discount rate is at 17%, and rediscount rate at 21% 2. How does a delay in spending due to the uncertain political climate affect velocity and income? 3. Give one policy that can complement the reserve requirement in expanding credit in the banking industry considering the peculiarities of rural and savings bank. 4. What is the maximum amount of checks that can be circulated from a demand deposit of P300M assuming a reserve requirement f 15%? a. How much money can the bank create the deposit? b. What would be the amount of checks if reserved requirements were raised to 25%?
1. Compute the additional loan the commercial bank can extend on a deposit of P250, 000 when it is required to keep a 20% reserve. Discount rate is at 17%, and rediscount rate at 21%
2. How does a delay in spending due to the uncertain political climate affect velocity and income?
3. Give one policy that can complement the reserve requirement in expanding credit in the banking industry considering the peculiarities of rural and savings bank.
4. What is the maximum amount of checks that can be circulated from a
a. How much money can the bank create the deposit?
b. What would be the amount of checks if reserved requirements were raised to 25%?
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