Refer to the information provided in Table 10.3 below to answer the questions that follow. Table 10.3 People's Bank Assets Liabilities + Net Worth Reserves: $300,000 Required $100,000 $500,000 Deposits Net Worth Excess Loans Total $800,000 $800,000 Total Refer to Table 10.3. The net worth of People's Bank is $ Select one: a. 200,000 b. 800,000 c. 1,000,000 d. 300,000

Refer to the information provided in Table 10.3 below to answer the questions that follow. Table 10.3 People's Bank Assets Liabilities + Net Worth Reserves: $300,000 Required $100,000 $500,000 Deposits Net Worth Excess Loans Total $800,000 $800,000 Total Refer to Table 10.3. The net worth of People's Bank is $ Select one: a. 200,000 b. 800,000 c. 1,000,000 d. 300,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 10 percent and there is no currency drain. Calculate the bank's excess reserves. >>> Answer to 2 decimal places. Assets Reserves at the Fed Cash in vault Securities Loans The banks' excess reserves are $☐ million. Liabilities (millions of dollars) 2535 20 Checkable deposits 15 Savings deposits 40 95
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Refer to the information provided in Table below to answer the question(s) that follow. Table First Commercial Bank Assets Liabilities + Net Worth Reserves: $800,000 $2 million $500,000 Deposits Net Worth Required $200,000 Exess Loans Total $2.5 million $2.5 million Total Refer to Table First Commercial Bank's excess reserves equal Select one: a. $200,000. b. $1,000,000. C. $1,500,000. d. $600,000.
Table 14.1: FIRST COMMERCIAL BANK Asset Liabilities Total Reserves: $150,000 $100,000 $1,000,000 $200,000 Deposits Net Worth Required Reserves Excess Reserves ? ? Loans $1,200,000 Total $1,200,000 Total 13. Refer to Table 13. 1. First Commercial bank's excess reserves equal $ a) 150,000 b) 250,000 c) 100,000 d) 50,000
How do I do #4?
Please no written by hand Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Bank’s Balance Sheet Assets Liabilities and Owners' Equity Reserves $150 Deposits $1,200 Loans $600 Debt $200 Securities $750 Capital (owners' equity) $100 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and ? the ? account. This would also bring the leverage ratio from its initial value ? of to a new value of ? . Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply. The total value of liabilities The riskiness of each asset The size of the monetary base
Economics
4. Working through an open-market operation Assume that the following balance sheet portrays the state of the banking system. The banks currently have no excess reserves. Assets (Billions of Dollars) Total reserves 5 Checkable deposits 25 20 50 Loans Securities Total O What is the required reserve ratio? 40% 25% Liabilities and Net Worth 5% 10% Total 50 50
25. Assume: a required reserve ratio of 5%, this bank is the only one with excess reserves, banks do not wish to hold excess reserves and the public does not wish to increase its cash holdings. What is the maximum amount of new money the banking system can create? a) $700,000 b) $400,000 c) $4,000,000 d) $5,000,000 e) $11,000,000
1. The amount of funds that a bank chooses to keep on hand beyond what it is required to is called: excess reserves. excess deposits. federal funds. extra holdings. 2. Suppose Bank Y currently has $300M in demand deposits and $45M in reserves. Bank Xs reserve ratio is 10% 12% 15% None of the above
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6. Which of the following is liability ona bank's balance sheet? a. a certificate of deposit b. consumer loans c. physical capital d. Treasury securities e. all of the above