The table gives information about items on a bank's balance sheet.Calculate the bank's deposits that are part of M1, deposits that are part of M2, and the bank's loans, securities, andItemreserves.(millions of dollars)Checkable depositsSavings depositsSmall time deposits400The bank's deposits that are part of M1 equal $million.500720The bank's deposits that are part of M2 equal $ million.Loans to businesses950Government securities600Currency30Reserves at the Fed40Enter your answer in the edit fields and then click Check Answer.2 partsremainingClear AllCheck AnswerMacBook AirDIIDD80888F10F11F12escF4F5F6F7F8F9F1F2F3!@23$%&12467{YUPQWEtabSDFGHKАcaps lock>+ I/* 00

The table gives information about items on a bank's balance sheet. Item (millions of dollars) Calculate the bank's deposits that are part of M1, deposits that are part of M2, and the bank's loans, securities, and Checkable deposits 400 Savings deposits Small time deposits. reserves. 500 720 The bank's deposits that are part of M1 equal $ million. Loans to businesses 950 Government securities 600 The bank's deposits that are part of M2 equal $ million. 30 Currency Reserves at the Fed 40 Check Answer Enter your answer in the edit fields and then click Check Answer. Clear All 2 remaining MacBook Air DD DII F10 888 80 F6 F4 F3 F2 esc F1 & @ # $ 7 8 ! 6 3 4 1

The table gives information about items on a bank's balance sheet. Item (millions of dollars) Calculate the bank's deposits that are part of M1, deposits that are part of M2, and the bank's loans, securities, and Checkable deposits 400 Savings deposits Small time deposits. reserves. 500 720 The bank's deposits that are part of M1 equal $ million. Loans to businesses 950 Government securities 600 The bank's deposits that are part of M2 equal $ million. 30 Currency Reserves at the Fed 40 Check Answer Enter your answer in the edit fields and then click Check Answer. Clear All 2 remaining MacBook Air DD DII F10 888 80 F6 F4 F3 F2 esc F1 & @ # $ 7 8 ! 6 3 4 1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. If there is no one who is interested in borrowing from a bank, the bank's excess reserves will be zero the entire bank system will collapse there will be no process of money creation the Fed would have to raise the discount rate to encourage more borrowing
The Federal Reserve reported the following information about the money supply of the United States in October 2023: Monetary Series Reserves of depository institutions Currency in circulation Total checkable deposits Total savings deposits Small time deposits Retail Money Market Mutual Funds Monetary Base M1 Money Supply M2 Money Supply Value ($billions) $2,243.0 $4,981.8 $990.6 $1,654.2 $5,519.5 $20,725.6 a. Use the information in the table to find the values of Reserves of depository institutions, Total Savings deposits, and the M1 Money Supply.
Please answer all parts of the question, thank you!
The table shows the commercial banks' balance sheet (aggregated over all the banks). The commercial banks' desired reserve ratio on all deposits is 5 percent and there is no currency drain. Question Help Calculate the bank's excess reserves. Assets >>> Answer to 2 decimal places. Liabilities (millions of dollars) Reserves at the Fed 20 The banks' excess reserves are $ Checkable deposits 120 million. Cash in vault 15, Savings deposits Securities 90 65 Loans 110 Enter your answer in the answer box and then click Check Answer. ? 2 parts remaining Clear All Check Answer MacBook Air DII DD F12 888 F11 F10 F7 F8 F9 F5 F6 F4 esc F2 F3 F1 & # $ % delete %3D ! @ 6. 8. 4 1 2 Y Q W E tab J K F G A S caps lock N M V shift option command I T
Question 35 If a bank has a required reserve ratio of 25% and there are $5,300,000 in deposits, what is amount of required reserves? $25,000 $280,000 $1,325,000 $2,275,000 $5,005,000
2. The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves. 2.1 How much excess reserves does the bank now have? Show your computation. 2.2 Complete the table below for the Third National Bank. Classify the assets and liabilities and net worth. What is the total assets of Third National Bank? The figures in the table below are for the Third National Bank. All figures are in thousands of dollars. Assets Liabilities and Net Worth Stock Shares $ 420 $ _____ $ _____ Reserves 25 _____ _____ Property 300 ____ _____ Securities 100 ____ _____ Loans 100 ____ _____ Demand Deposits 105 ____ _____ 2.3. If the required reserve ratio for the Third National Bank is 10 percent, what is the monetary multiplier?
Banking Question 2 Please use the balance sheet for Bank Alpha to answer the questions. Assume Bank Alpha loans all of its excess reserves, and the assets and liabilities balance on the balance sheet. Show all work. Bank Alpha a. Required Reserves C. Loans e. Assets X $27,000.00 How much is X, the dollar amount of reserves? b. How much is the required reserve ratio? How much is the M? m Checking Deposits Saving Deposits Liabilities $5,000.00 Assume Bank Alpha loans its excess reserves to Bank Beta. Next Bank Beta loans their excess reserves to Bank Gamma. Please create balance sheets for Banks Beta and Gamma. Assume there are no excess reserves in this banking system. d. How much total money stock created in this banking system? What is the total of M1 for Bank Alpha? M2? $25,000.00
A bank has a reserve ratio of 10 percent, and it has received $5,000 of deposits. What is the bank's assets? Group of answer choices It has $500 in reserves and $4,500 in loans. It has $50 in reserves and $4,950 in loans. It has $50 in reserves and $5,000 in loans. It has $10 in reserves and $4,990 in loans.
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Initial deposit ($100) The Money Multiplier Process Loan Loan $ University Bank Excess reserves: $25 Required reserves: $75 Deposit Bank #2 Deposit Excess reserves: $6.25 Required reserves: $18.75 Instructions: Round your responses to two decimal places. a. What volume of loans can the banking system in the figure support? Bank #3 Loan Deposit Excess reserves: $1.56 Required reserves: $4.69 Bank #4 etc. Excess reserves: $0.39 Required reserves: $1.17 b. If the reserve requirement were 15 percent rather than 75 percent, what would the system's lending capacity be?
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2. Here is the balance sheet of the consolidated banking system of the country of Zargadee (all entries are in millions): Consolidated Balance Sheet of the Entire Economy of Zargadee Assets Reserves Cash in Vault Deposits at CBZ Bonds Loans 50 90 Total Reserves Total Assets 140 460 1000 1600 Liabilities Deposits Borrowing from CBZ Total Liabilities 1400 200 1600 Assume that 1) households hold no currency and 2) banks hold no excess reserves. The current reserve requirement is 10%. The Central Bank of Zargadee (CBZ) uses the three traditional tools to perform monetary policy in an economy that is reserve constrained. a. Under our assumptions, what is the money multiplier? For each part (b)-(d) below, i) Conceptually explain the effect of the policy on the money supply. ii) Calculate the change in M1 given our assumptions. iii) Construct the new balance sheet of the consolidated banking system of Zargadee under the new policy. iv) When the money supply changes, list a chain of events to…