Phil Frugal has been saving his pennies since he was 5 years old. He is now 45 and deposits his savings in a bank. His pennies total $5,000. Using this information and your knowledge of the banking system, select the best match for each item. Then calculate the values of reserves, required reserves, and excess reserves. Assume a required reserve ratio of 10%. a. The amount of interest the bank must charge on a loan required reserves excess reserves reserves none of these b. The amount of funds banks must, by law, hold in rescrve required reserves excess reserves reserves none of these c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed required reserves excess reserves reserves none of these

Phil Frugal has been saving his pennies since he was 5 years old. He is now 45 and deposits his savings in a bank. His pennies total $5,000. Using this information and your knowledge of the banking system, select the best match for each item. Then calculate the values of reserves, required reserves, and excess reserves. Assume a required reserve ratio of 10%. a. The amount of interest the bank must charge on a loan required reserves excess reserves reserves none of these b. The amount of funds banks must, by law, hold in rescrve required reserves excess reserves reserves none of these c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed c. The amount a bank has on hand to fulfill the cash demands of its customers and the reserve requirements of the Fed required reserves excess reserves reserves none of these

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Assuming that the cash held by the public drops to $5,000,000 with and equal amount becoming excess reserves and the required reserves ratio drops to 12 percent
If banks require 10% of transaction deposit in reserve, How much is the required reserve? How much is the excess reserve?
Only typed answer and don't use chat gpt
Question The table below shows the components of M1 and M2 in the U.S. Use the table to calculate Total M1. Round to the nearest third decimal place. Provide your answer below: trillion Components of M1 and M2 in the U.S. Currency Traveler's checks Demand deposits and other checking accounts Savings accounts Time deposits Individual money market mutual fund balances $ trillions $1.2 $0.004 $2.204 $9.805 $0.527 $1.176
Federal Reserve System.
What are the arguments for and against deposit insurance such as that provided by the FDIC?
In your own words, please define the following terms: asset, balance sheet, credit risk, excess reserves, interest- rate risk, liquidity risk, required reserves,Federal deposit insurance. Please make it simple and no plagiarism thank you
refer to the photo
5
The commercial banking system has excess reserves of $3,000. Then new loans of $40,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be ___%
By using the table, Commercial Bank Balance Sheet Assets ($) Liabilities (S) Vault Cash 8000 Deposits 35000 Loans 27000 1. If the required reserve ratio is 15 percent, the required reserve is $ 2. If the required reserve ratio is 15 percent, the maximum loan that the bank can newly make is $ 3. Update the balance sheet after the bank makes a new loan up to the amount determined in #2. 4. With the updated balance sheet (#3), calculate total assets ($) and total liabilities ($).
The commercial banking system has excess reserves of $2,000. Then new loans of $20,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be ____%.