Show your workAnswer the next question(s) on the basis of the following table for a commercial bank orthrift:(1)Legal reserve ratio,percent10202530(3)Actual(2)Checkabledepositsreserves$40,000 $10,00040,00010,00040,00010,00040,00010,0001. Refer to the above table. When the legal reserve ratio is 30 percent,the monetary multiplier is:Focus DInF

The Required Reserve Ratio: The required reserve ratio is the % of the total reserves that a…

Show your work Answer the next question(s) on the basis of the following table for a commercial bank or thrift: (1) Legal reserve ratio, percent 10 20 25 30 (3) Actual Checkable deposits reserves $40,000 $10,000 40,000 10,000 40,000 10,000 40,000 10,000 1. Refer to the above table. When the legal reserve ratio is 30 percent, the monetary multiplier is:

Show your work Answer the next question(s) on the basis of the following table for a commercial bank or thrift: (1) Legal reserve ratio, percent 10 20 25 30 (3) Actual Checkable deposits reserves $40,000 $10,000 40,000 10,000 40,000 10,000 40,000 10,000 1. Refer to the above table. When the legal reserve ratio is 30 percent, the monetary multiplier is:

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 4WNG

See similar textbooks

Similar questions

Explain what would happen if banks were notified they had to increase their required reserves by one percentage point from, say, 9 to 10 of deposits. What would their options be to come up with the cash?
The term moral hazard describes increases in risky behavior resulting from efforts to make that behavior safer. How does the concept of moral hazard apply to deposit insurance and other bank regulations?
How can a bank end up with negative net worth?
Why do we call a bank a financial intermediary?
What is the asset-liability time mismatch that all banks face?
Explain why the money listed under assets on a bank balance sheet may not actually be in the bank?
10
Economics Suppose a banking system has $ 130,000 of checkable deposits and actual reserves of $ 20,000. If the reserve ratio is 7% Required Reserves in the banking system are equal to: $ Report your answer as a whole number (no decimals)
284122945028 ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=5832642 Q Search this CENGAGE MINDTAP Aplia Homework: Money and the Financial System 2. A history of money Historically, money has not always been of uniform quality. For example, diamonds were often used as a form of money, but every diamond is different. What problem occurs when money is not of a uniform quality? O People will hoard high-quality money and spend low-quality money. As a result, the money used in transactions will be of inferior quality. O People will turn to commodity money if they don't trust paper money. O People will rely on barter rather than accept money as payment. Coins were an important monetary invention because: O Their value may be counted rather than measure O They can be used in vending machines O They are intrinsically valuable if they are made from precious metals like silver or gold Cattle can be used as money but can also be slaughtered for food. Cattle are an example of: O Commodity…
9. How would you incorporate security considerations/costs into the transactions demand model? What would this imply for the demand for currency in a relatively insecure urban environment (a) compared with a relatively safe one, (b) when owner-identiﬁed smart cards become available? Do these factors affect the demand for demand deposits? How would the proportion of currency to demand deposits be affected in these cases? 10. Can the transactions demand model be used to explain why ﬁnancial innovations in recent decades have reduced the transactions demand for M1? 11. Are transactions demand models useless, as Sprenkle (1969) argued? If they are, how would you explain the demand for M1 or just for demand deposits in the economy?
i need the answer quickly
A bank has $20 in cash in its vaults, $280 deposited at the central bank, has made $1700 in loans to its customers and has $2000 in deposits from customers. What is this bank's actual reserve ratio? (Round to two decimal places and do not enter the percent. If your answer is 0.114 (11.4%), enter 0.11. If your answer is 0.115 (11.5%), enter 0.12. If appropriate, remember to enter the - sign.)