Refer to the balance sheet for Bank X to answer questions 16. and 17Bank X-Balance SheetLiabilities:Checkable Deposits $80,000,000$800,000Assets:Reserves;Vault CashReserve Balance Account with the Fed $10,000,000Loans Outstanding;Mortgage Loans$32,000,000Business Loans23,000,000Personal Loans11,000,000U.S. Government Securities3,200,000Total Loans Outstanding$69,200,000Total Assets$80,000,000Assuming a 12% reserve ratio, bank X has excess reserves of:a. $1 millionOb. $1.2 millionc. $100,000d. -$1.2 million

The calculation of excess reserves for Bank X is based on the information provided in the balance…

Answered: Refer to the balance sheet for Bank X…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the main purpose of the Federal Reserve Bank's regulatory oversight of banks? to maximize economic growth to ensure compliance with all state, federal, and international laws to minimize macroeconomic fluctuations to minimize unemployment to ensure the stability of the banking system
QUESTION 24 LAST CHANCE BANK OF TOMBSTONE BALANCE SHEET ASSETS LIABILITIES & NET WORTH $900,000 $100,000 $300,000 $3,700,000 $2.000.000 cash in the vault: demand deposits: $5,000,000 deposits at Fed US treasury bonds: loans: Building: capital stock: $2,000,000 TOTALS: $7,000,000 TOTALS: $7,000,000 24. Given a reserve requirement ratio of 10%, what will be the maximum effect on quantity of money in circulation of a Federal Reserve sale of $100,000 worth of government securities directly to a bank? an increase of $100,000 a decrease of $1,000,000 a decrease of $100,000 an increase of $1,000,000
The Island Nation of Murlonio prints its own currency called the Mariano. Use the data below to calculate the M1 measure of the money supply. Source Amount Cash in circulation $2,055 Vault cash held in bank reserves $532 Checking deposits $22,067 Savings deposits $22,005 Treasury Bills, Notes, and Bonds $40,249 Certificates of Deposit (under $100,000) $33,438 Individual Money Market Accounts $33,706 Corporate Bonds $31,735 Do not round your answer.
You are given the following balance sheet of the Summer Bank (21) Balance sheet of the Winter bank Assets Liabilities Cash $ 8,000 Deposited with the Fed $ 5,000 Loans $ 117,000 Deposits $ 80,000 Capital $ 50,000 Total $ 130,000 Total $ 130,000 The required reserve ratio (RRR) on all deposits is 5% d,What would be the excess reserves of this bank after the RRR is changed to 4%? e.How much new amount of loan will this bank be able to create with the RRR of 4%? f.How much new amount of loan the entire banking system be able to create because of the excess reserves? g.What happened to the money supply after the RRR was decreased to 4% from 5%?
The Money Supply: Small Time Deposits (less than $100,000) Demand Deposits and other Checkable Deposits Savings Deposits Money Market Accounts for individuals: Money Market Checking Accounts = $15 billion Money Market Savings & Investment Accounts = $10 billion Money Market Mutual Funds' Accounts (less than $100,000) Currency Large Dollar Accounts (over $100,000): Money market mutual funds for individuals, businesses, governments $650 billion $300 billion $445 billion. $645 billion. $325 billion. $880 billion. $750 billion $25 billion $600 billion $130 billion $100 trillion MZM (money-with-zero-maturity) measures the value of the money supply in circulation for households and businesses to immediately buy goods and services. Given the above listed financial data, MZM calculates to: services. Given the above listed financial data, MZM
The table given below shows the assets and liabilities of the Tenth National Bank, Assume that this is the only bank in the economy. Table 16 Balance Sheet of Tenth National Bank Assets Liabilities Reserves $2,730 Deposits $7,640 Loans $3,300 Total Assets $7,640 Total Liabilities $7,640 Refer to Table 16. If this Bank's depositors withdraw $935, and the Federal Reserves decreases the reserve requirement from 12% to 9%. This bank's excess reserves will change by: O $313.35 O $371.05 O -$554.60 O -$621.65 -$563.95
For this bank what would be the level of excess reserves if the required reserve ratio were 20%? A) 0 B) $300,000 C) $900,000 D) $1,000,000 E) There would be a shortfall in required reserves of $100,000
The table below shows information for United Bank. Deposits Reserves Reserve Requirement $300 million $33 million 10% 37 Which of the following statements is true concerning United Bank in the federal funds market? Multiple Choice United Bank will lend $3 million reserves in the federal funds market. United Bank will borrow $30 million reserves in the federal funds market. United Bank will lend $33 million reserves in the federal funds market. United Bank will borrow $3 million reserves in the federal funds market. # % &
Total reserves $55 billion Transactions deposits: $600 billion Cash held by public: $400 billion Bonds held by public: $400 billion Stocks held by public: $140 billion Gross domestic product: $8 trillion Interest rate: 6 percent Required reserve ratio: 0.10 How large is the money supply (M1)? How much excess reserves are there? What is the money multiplier? What is the available lending capacity?
Consider the balance sheet for Inspired to Thrive (IT) Bank below: Inspired to Thrive Bank Balance Sheet as at December 31, 2021 Assets Reserves Loans Securities S Liabilities and Owner's Equity 275 Deposits 1,105 Debts 660 Owner's Equity 1,550.00 340.00 150.00 2,040 2,040.00 What is the reserve deposit ratio of IT Bank? Why is this ratio significant to the bank's operation?
How does the Fed increase the level of reserves in the banking system? OPTIONS: by raising interest rates by selling bonds by buying bonds by lowering interest rates
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