Agri Bank has $2,000 in vault cash and $15,000 in deposits at the Federal Reserve Bank....

 

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Agri Bank has $2,000 in vault cash and $15,000 in deposits at the Federal Reserve Bank. Agri Bank has total loans = $45,000 and total deposits = $100,000. The Fed requires reserves = 10% of deposits. a. What is Agri Bank's total reserves amount? b. What is Agri Bank's required reserves amount? c. What is Agri Bank's excess reserves amount? d. What is the maximum amount of new loans that Agri bank can make? Same data as above question except the Central bank changes the reserve requirement (k) to 7% a. What is Agri Bank's total reserves amount? b. What is Agri Bank's required reserves amount? c. What is Agri Bank's excess reserves amount? d. What is the maximum amount of new loans that Agri bank can make? e. What happened to the monetary base from #20 to #21? For each of the Fed's monetary policy tools, indicate the action the fed would take to achieve the goals. Monetary Policy Goals Fed Policy Tool Open market operations Discount rate Reserve requirement (k) Increase money supply, cut interest rates Reduce money supply, raise interest rates Agri Bank has $2,000 in vault cash and $15,000 in deposits at the Federal Reserve Bank. Agri Bank has total loans = $45,000 and total deposits = $100,000. The Fed requires reserves = 10% of deposits. a. What is Agri Bank's total reserves amount? b. What is Agri Bank's required reserves amount? c. What is Agri Bank's excess reserves amount? d. What is the maximum amount of new loans that Agri bank can make? Same data as above question except the Central bank changes the reserve requirement (k) to 7% a. What is Agri Bank's total reserves amount? b. What is Agri Bank's required reserves amount? c. What is Agri Bank's excess reserves amount? d. What is the maximum amount of new loans that Agri bank can make? e. What happened to the monetary base from #20 to #21? For each of the Fed's monetary policy tools, indicate the action the fed would take to achieve the goals. Monetary Policy Goals Fed Policy Tool Open market operations Discount rate Reserve requirement (k) Increase money supply, cut interest rates Reduce money supply, raise interest rates

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a Agri Banks Total Reserves Amount Total reserves consist of vault cash and deposits at the Federal Reserve So Agri Banks total reserves amount is Tot... View the full answer