Suppose that the reserve requirement is 8%, the excess reserves to deposit ratio is 0.51, and the currency to deposit ratio is 0.34. The value of the money multiplier is
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- Initial deposit is $10,000 Required Reserve Ratio is 10% Calculate: $ Multiplier Required Reserves Excess Reserves Potential $ CreatedPls help with below homework State below statement is True or False If the desired reserve ratio in a country is equal to 5% and the cash drain ratio is 30%, a deposit of $10,000 will create $36,356 of money”.Pls help with below homwork, As per my calculation total deposit value will increase by $7,944.44
- Consider the following balance sheet of Berjaya Bank. The required reserve ratio on demand deposits is 8%. Berjaya Bank Aset / Assets (million $) Rizab / Reserves Pinjaman / Loans Sekuriti / Securities Liabiliti / Liabilities (million $) Deposit semasa Demand deposits Modal bank / Net Worth 30 290 150 140 30 1. Calculate the bank's excess reserves 2. Suppose Berjaya Bank sells $40 million of its securities to the central bank. Show the balance sheet of Berjaya Bank after this transaction10Calculate the value of money multiplier and the total deposit created if the initial amount is $800 million and LRR is 10%.
- Deposit Reserve Requirement Money Multiplier Potential Money Creation $1,000 10% From above $1,000 20% From above $1,000 25% From above With a deposit of $1,000 and the reserve requirement of 10% what is the potential money creation? Group of answer choices $5,000 none of the above $10,000 $4,000Total Reserves are $5 Trillion. Required Reserves are $2 Trillion. Calculate theExcess Reserves. Is it 2, 3, 5, or 7 Trillion?Typed plz And asap thanks Please provide me a high quality solution for thumsup and take care of plagiarism also
- 7Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 42Deposits 245Loans 160 Securities 48Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)If banks require 10% of transaction deposit in reserve, How much is the required reserve? How much is the excess reserve?