Assets Liabilities and Equity Required Reserves $5,000 Demand Deposits $25,000 Excess Reserves $10,000 Business Loans $5,000 Student Loans $10,000 Government Securities $10,000 Owner's Equity $10,000 Total Assets $35,000 Total Liability $35,000 Random 1 - Fed Buys Bonds 21. What is the current Required Reserve Ratio? 22. Assume that the FED buys $2,000 in bonds from this bank, show the NEW total for the

Assets Liabilities and Equity Required Reserves $5,000 Demand Deposits $25,000 Excess Reserves $10,000 Business Loans $5,000 Student Loans $10,000 Government Securities $10,000 Owner's Equity $10,000 Total Assets $35,000 Total Liability $35,000 Random 1 - Fed Buys Bonds 21. What is the current Required Reserve Ratio? 22. Assume that the FED buys $2,000 in bonds from this bank, show the NEW total for the

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

Explain what would happen if banks were notified they had to increase their required reserves by one percentage point from, say, 9 to 10 of deposits. What would their options be to come up with the cash?
In a program of deposit insurance as it is operated in the United States, what is being insured and who pays the insurance premiums?
Suppose the Fed conducts an open market sale by selling $10 million in Treasury bonds to Acme Bank. Sketch out the balance sheet changes that will occur as Acme restores its required reserves (10% of deposits) by reducing its loans. The initial balance sheet for Acme Bank contains the following information: Assets - reserves 30, bonds 50, and loans 250; Liabilities - deposits 300 and equity 30.
What is the risk if a bank does not diversify its loans?
Why might banks want to hold excess reserves in time of recession?
How can a bank end up with negative net worth?
Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 44Deposits 255Loans 155 Securities 51Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 6%(Give answers to 2 decimal places as needed)
Solve it correctly please. Typed answer please. I ll rare
10
Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 32Deposits 205Loans 150 Securities 53Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)
Only typed answer
Bank A:Reserves on hand $38,000Deposit in the Fed $30,000US government bonds $12,000Checking account balances $120,000Savings account balances $25,000Bank B:Reserves on hand $50,000US government bonds $7500Savings account balances $20,000Checking account balances $100,000 In addition, people in this economy hold $8800 in cash, and all banks have the same reserve requirements we've used all semester. Calculate the "real-world multiplier," carefully following all numeric instructions.