Table 1 First Charter Bank Assets Liabilities Reserves $800 Deposits Loans $400 Net Worth Total $1,200 Total Refer to Tablel. The required reserve ratio is 25%. If the First Charter Bank is reserve requirement and has no excess reserves, its loans equal Lütfen birini seçin: O A. $600 O B. $900 OC $1,000 O D. $1800 O E $1.400

Table 1 First Charter Bank Assets Liabilities Reserves $800 Deposits Loans $400 Net Worth Total $1,200 Total Refer to Tablel. The required reserve ratio is 25%. If the First Charter Bank is reserve requirement and has no excess reserves, its loans equal Lütfen birini seçin: O A. $600 O B. $900 OC $1,000 O D. $1800 O E $1.400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the banking syslem in country A has $300 billion in lotal reserves and $12,000 bilion in money supply. the excess reserve ratio is ON, and curency in crculation (C) is zoro, the reserve requirement ratio is Da8 percent O25 percent Oca percent Oa. Not enough information is provided to answer this question Oeon of Moving to another queston will save this resporise MacBook Pro T1 56 IP %3D 3. 6. 7. 8 A 9. 3 4 P T. Y. W
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Suppose there is an upswing in the economy with a large demand for finance to invest by the residential and non-residential building sector such that lending by all banks increases by $250 billion. On the assumption the reserve (or liquidity) ratio of banks is 12% this expansion in economic activity will result in an endogenous increase of O $20 billion of reserves and $230 billion of bank deposit money O $34.1 billion of reserves and $284.1 billion of bank deposit money O $20 billion of reserves and $270 billion of bank deposit money O $26.2 billion of reserves and $276.2 billion of bank deposit money
Item Dollars Checkable Deposits Small Time Deposits Currency Money-Market Mutual Funds Held by Businesses Savings Deposits and Money-Market Deposit Accounts Money-Market Mutual Funds Held by Individuals In Billions $600 $700 $500 $1,200 $2,500 $800 What is the size of the M1 money supply? O $800 O $1,900 O $1,100 O $2,600
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