Please given answer Accounting question Suppose a bank receives a $5,000 deposit, and thereserve ratio is 25%. The bank is required to keep inreserve an amount equal to?

Step 1: Define Reserve RatioBanks cannot lend all the deposits they receive, they need to keep a…

Answered: Suppose a bank receives a $5,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3. Suppose you dopiest SR 5000 in currency into your checking account at a branch of Al-Rajhi Bank, which we will assume that the required reserve ration is %10. a. Use a T-account to show the initial effect of this transaction on Al-Rajhi's balance sheet. b. Suppose that Al-Rajhi Bank makes the maximum loan it can from the fund you deposited. Use a T-account to show the the initial effect of this transaction on Al- Rajhi's balance sheet. Also include in this T-account the transaction from part (a). c. Now suppose that whoever took out the loan in part (b) writes a check for this amount and that person receiving the check deposit in Alinma Bank. Use a T-account to show the the initial effect of this transaction on Alinma's balance sheet.
A bank pays 5% with daily compounding on its savings accounts. Should it advertisethe nominal or effective rate if it is seeking to attract new deposits?
Assume that all banks are loaned up and that the reserve requirement is 2%. If you deposit $10,000 in currency into your checking account, what is the change in the MONEY SUPPLY? (Round answers to the nearest whole number, and be careful about signs.)
Suppose you deposit $100 in a bank, which of the following will occur A The bank's assets will increase by $100 B The bank's liabilities will increase by $200 C The bank's liabilities will decrease by $100 D The bank's reserves will increase by $200
Suppose a bank has $1,000 in deposits and $100 in reserves. If the desired reserve ratio is 5 percent, how much can this bank increase its loans? O a. $50 O b. $80 O c. $0 O d. $400 O e. $100
suppose that you overdrew your bank account by $200. the bank charge you a fee of $30 and your paycheck will be deposited in 5 to cover the overdraft. please calculate the period rate apr and aer that you pay for this overdrew
Assume internet rate is 2%. If $1602 is put in bank on 5-8-18 and stays in bank earning interest until 3-8-21, how much money is in the bank?
Suppose you borrow from a bank $1,756.06 today (t=0). You agree to pay back $3,637.64 in 4 years (t=4). The interest rate (%) that the bank charge you is closest to ________%. Input your answer without the % sign and round your answer to two decimal places.
4. A customer deposits money into a bank which was able to create $10 000 000 in credit from it. The RRR is 10%. What was the value of the initial deposit?
Bank A just received total deposit equal to $30,700,000.00. Required reserve ratio for the banking system is set at 2.1%, (or 0.021). a. How much of the total deposit can bank A lend out? In other words, what is bank A's excess reserve? $ b. By how much will total money supply change if bank A, and all subsequent banks, are able to lend out their entire excess reserves as the result of the initial $30,700,000.00 deposit in bank A? $
a) You have a bank account that earns 6.8% interest rate. How much must you deposit (prinicipal) in order to have $4279 in your bank in 11 months? b) What is the interest rate?
You observe the following details about a bank (amounts in million) net interest income: $1,250 net noninterest income: $200 operating expenses: $900 loan loss provisions: $170 gains from trading: $75 Taxes: $150 Total assets: $17,000 Equity: $2,200 What is the bank's ROE? Write your answer expressed as a %, and round to two decimals. For instance, if you think the ROE is 0.0856237, then you write 8.56 below

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Suppose a bank receives a $5,000 deposit, and the reserve ratio is 25%. The bank is required to keep in reserve an amount equal to ?