The table below is the balance sheet for all the banks combined in the banking system.AssetsLiabilities/Equity$ 75,000$ 750,000Demand depositsShareholders’ equityReservesLoans675,00075,000Securities45,000Fixed assets30,000Total$825,000Total$825,000a. Which one of the above figures is part of the money supply?(Click to select).v worth $are included in money supply.b. If all banks maintain 100% reserves, what happens to the money supply if $400 cash is deposited into one of the banks in thesystem?Money supply would (Click to select) vC. If none of the banks maintain reserves, what happens to the money supply if $400 cash is deposited into one of the banks in thesystem?Money supply would (Click to select)

Money supply is the total amount of money available in the economy. Central bank sets the money…

The table below is the balance sheet for all the banks combined in the banking system. Assets Liabilities/Equity $ 75,000 $ 750,000 Demand deposits Shareholders' equity Reserves Loans 675,000 75,000 Securities 45,000 Fixed assets 30,000 Total $825,000 Total $825,000 a. Which one of the above figures is part of the money supply? (Click to select) worth $ are included in money supply. b. If all banks maintain 100% reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the system? Money supply would (Click to select) v c. If none of the banks maintain reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the system?

The table below is the balance sheet for all the banks combined in the banking system. Assets Liabilities/Equity $ 75,000 $ 750,000 Demand deposits Shareholders' equity Reserves Loans 675,000 75,000 Securities 45,000 Fixed assets 30,000 Total $825,000 Total $825,000 a. Which one of the above figures is part of the money supply? (Click to select) worth $ are included in money supply. b. If all banks maintain 100% reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the system? Money supply would (Click to select) v c. If none of the banks maintain reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the system?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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