If the required reserve ratio is 5%, how much can this bank lend? A) 400,000 B) 600,000 C) 750,000 D) 800,000 E) 900,000

Q: True or False 2. The Fed uses the monetary policy tool of open market operations to affect interest…

A: Open Market Operations: It is one of the monetary policy tools with the central bank. Under which…

Q: Banks may money out of other people's money. True False

A: The banks can generate money from people money and this can be done in many ways, one way is to use…

Q: Round Deposits Required Reserves of 20% Excess Reserves New Loans 50% of loan proceeds are held…

A: Money supply is the the sum of total money in the liquid form present in the economy at a given…

Q: If a bank has total deposits of $7,200 and reserves of $1,600: Instructions: Round to the nearest…

A: Cash Reserve ratio is the percentage of deposits which commercial banks are required to keep as cash…

Q: should banks have the right to assign a mortgage to a third party?

A: Answer in step 2.

Q: As part of the wave of “deregulation” of financial markets in the 1980s, banking laws were changed…

A: The interest rate payable on the deposit account by banks was restricted by law before the 1980…

Q: What does the seller’s bank do?

A: A real estate deal in which the seller, rather than a financial institution, manages the mortgage…

Q: Why (not how) did money evolve out of a barter economy?

A: A market system with exchange of goods and services with goods and services is known as barter…

Q: It is a form of guarantee given by a reputable bank. If the borrower defaults in paying, the…

A: A bank is a financial institution that is licenced to accept deposits and provide loans. Retail…

Q: Second National Bank is capable of loaning $____________

A: Reserves refer to the amount that commercial banks are required to keep aside from lending to the…

Q: Mr. Bill Smith lives in Dayton Ohio and always deposits money into a checking account in a bank…

A: (a) The concept of Money Multiplier effect basically shows the level of money creation or supply in…

Q: A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a…

A: Banks generate profits primarily through the intermediation process, where they accept deposits from…

Q: What is the definition of commercial bank ?

A: Commercial Bank is that institution of finance which are of three types: Public Banks- like State…

Q: How much money does the average American have in the bank?

A: As per Federal Reserve Survey of Consumer Finance 2016, the average balance was $10545.

Q: money is a concept has a certain value at a point in time.

A: Money is the concept that money you have in present is worth more than the identical sum in the…

Q: What are some factors to consider when choosing a bank?

A: Banks are the financial institutions that are very important in every economy. They are the main…

Q: What is coinsurance

A: Co-insurance is the amount that you are required to pay for a medical claim, apart from any…

Q: If you go to an Islamic bank and ask for financing for following purposes, which financial product…

A: Risk refers to the uncertainty associated with an event's outcome. In the finance industry, it…

Q: The FDIC а. has been credited with reducing the number of bank failures since 1933. b. insures most…

A: The Federal Deposit Insurance Corporation (FDIC) is one of two organizations that give deposit…

Q: Using an example explain what the shadow banking system is and how it works.

A: The shadow banking system is not like long-established banks and lending institutions because these…

Q: What is the role of commercial banks in the economy? Why are they important?

A: There are some business cycles which have to be known by the business management and also the…

Q: A bank that has liabilities of $180 billion and a net worth of $20 billion must have

A: In a market, a net worth of a firm, bank or any other organization provide information about the…

Q: depository instiutions do all the following except pool risks minimize the cost of obtaining funds…

A: Depository institution is the financial institution that works as a mediator between the savers and…

Q: hy were banks originally created? How has their purpose evolved over time?

A: A bank is a type of financial institution that takes client deposits and lends or invests the money.…

Q: one method to spend more money is to deduct an amount automatically from your salary in a direct…

A: The direct deposit system refers to the system that allows banks to transfer a specific amount…

Q: Should Banks Reinvest their Profits in the Communities where they operate?

A: Banks are defined as institutions that deal in money and provides money related services to its…

Q: Financial intermediaries a.reduce the cost of financial transactions. b.provide safety of resources…

A: Answer: Financial intermediaries work as a middleman between the two parties (such as savers and…

Q: The required reserve ratio is 25% for all banks. Second National Bank is capable of loaning $ (Do…

A: Net worth is positively related to reserves. It means as reserves rise then net worth fall and as…

Q: Find the required reserve if the excess reserve is $600 and the actual reserve is $100

A: In the given question Excess reserve = $600 Actual reserve = $100 Required reserve value needed =?

Q: Ashley deposits $50,000 in a commercial bank that is required to retain 20% in reserve. The deposit…

A: Each commercial bank has to keep a certain percentage of its demand deposit as a reserve and can…

Q: Identify the largest 5 banks in the United stated.

A: United States is one the most developed countries of the world. There are many large banks in the…

Q: QUESTION 26 Explain a banking system of your choice (US, Europe, Japan, UK, Emerging Economies). For…

A: Banks are essential to everyone since they have a variety of services. They give us loan facilities,…

Q: why is banking important to the economy? and why do banks need to be regulated?

A: Banks are government Authorised, here people can put their money safely and also banks provide loans…

Q: Explain in detail the types of banks?

A: Any economy's foundation is its banking sector. It is made up of several financial organizations…

Q: what is a real life example of a commercial bank

A: Commercial banks are the financial institutions which provide people with facility of loans and…