Consider the following bank. Cash in Vaults $25 Its deposits at Central Bank-$275 Loans it has made to customers=$1600 Value of government bonds it owns=$100 Deposits made by its customers=$2000 What are the bank's reserves (in dollars)? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)

Consider the following bank. Cash in Vaults $25 Its deposits at Central Bank-$275 Loans it has made to customers=$1600 Value of government bonds it owns=$100 Deposits made by its customers=$2000 What are the bank's reserves (in dollars)? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A2)
Suppose there is a small island economy out in the South Pacific known as Volunteer Island. Following is a complete list of assets on the island. Use this information for the next two questions. $10,000 in cash and coins located throughout the island Another $2,000 cash and coins locked away in bank vaults 10 gold statues of bluetick coonhound dogs, all named "Smokey ," approximate value of $1,000,000 $7,000 in checking account deposits $20,000 in savings accounts deposits $2,500 worth of Volunteer Island government savings bonds, held by citizens Total real estate property valued at $2,000,000 $4,000 held in small time - deposits What is amount of M1 circulating on Volunteer Island?m
Consider the following bank. Cash in Vaults=$25 Its deposits at Central Bank-$125 Loans it has made to customers=$600 Its current reserve ratio=0.2 How much do its customers have in deposits at the bank? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)
People in Cambodia keep talking about Bitcoin, a crypto currency (electronic currency). Given the function of money and from the point of view of Cambodian, (1) please describe the 3 functions of money (2) given the 3 functions of money, can we regard Bitcoin as money in Cambodia? Please explain your answer (3) Recently, National Bank of Cambodia (NBC) just launched the new system of payment to facilitate the inter-bank payment transfer and business transaction, called “Bakong” and its mobile app. However, Ms. Chea Serey, Director General of NBC reiterated her statement that “the recently-launched Bakong, an interbank blockchain-based payment system, is not a central bank digital currency (CBDC)”. Using the 3 functions of money, explain why Bakong does not qualify as money?
112.) Which of the following is not a reason that banks keep reserves? To settle transactions with other banks. To meet the Fed’s minimum reserve requirement. To keep the interest rate from becoming too low. To make sure their vault looks full.
7
What are the basic functions of money in the economy, and how do these functions help facilitate transactions and economic activity?
Consider the following monetary data: 2000 2008 Monetary base ($bn) 8.5 8.7 Reserve deposit ratio (%) 20 15 Currency deposit ratio (%) 13. 23 a. Calculate the change in the money supply between 2000-2008 if the currency deposit ratio changes as shown, but the reserve deposit ratio stays constant. b. Calculate the change in the money supply between 2000-2008 if the reserve deposit ratio changes as shown, but the currency deposit ratio stays constant. c. Which of the two changes is more responsible for the overall change in the money supply from 2000-2008? Why?
Consider an individual who moves to Canada and brings with him his life savings of $60,000, which he deposits in a Canadian bank. For each of the cases below, compute the overall change in deposits and reserves in the Canadian banking system as a result of this new deposit. a. 10 percent target reserve ratio; 4 percent cash drain; 6 percent excess reserves: Overall change in deposits = $ . Overall change in reserves = $ (Round your responses to the nearest dollar.) %3D b. 16 percent target reserve ratio; 5 percent cash drain; 5 percent excess reserves: Overall change in deposits = $ Overall change in reserves = $ (Round your responses to the nearest dollar.)
Suppose the desired reserve ratio in Canada is 15%. Assume that the Bank of Canada has decided to increase the total quantity of money in the economy-as measured by M1-by $150 million. The Bank plans to do this by printing Canadian dollars. How much money must the Bank print to increase the money supply by the desired amount? (Calculate your answer in millions of CAD, round it to two decimal places, and write it without units. E.g., write 1.00 for $1 million.)
8-10 please
Suppose that the following information describes the banking system in Belarus. Currency = $940 billion Checking Deposits = $1,475 billion Total Reserves = S198 billion Required Reserves = $177 billion (a) Calculate the level of the monetary base (MB) in the banking system of Belarus. (b) Given the above data calculate the money multiplier (m). Round vour answer to 2 decimal places.