Five people are taking classes this semester. They all need help with different subjects' homework assignments...
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Five people are taking classes this semester. They all need help with different subjects' homework assignments and have strengths in different areas, according to the information on table 1 below. Table 1: Strengths and needs of selected students Rosie helps with math HW wants help with science HW Bob helps with English HW wants help with history HW Piper Dewey Molly helps with math HW helps with science HW helps with science HW wants help with science HW wants help with English HW wants help with math HW If the school this semester could be described as a barter economy, which of pairs of students would be able to obtain the help that they need? 2. M&M Lady G. decides to forego a major appliance purchase and save the money. She transfers $2,100 from her checking account to her savings account. As a result of this transfer by itself, how are M1 and M2 affected? A) M1 increases by $2,100 and M2 stays the same. B) M1 increases by $2,100 and M2 increases by $2,100. C) M1 decreases by $2,100 and M2 increases by $2,100. D) M1 decreases by $2,100 and M2 stays the same. 3. Banking with Abe Table 1 shows the assets and liabilities of the Bank of Abe. Table 1: The Bank of Abe Assets Liabilities Reserves Loans $25,000 125,000 Deposits $150,000 a. Suppose Abby goes to the Bank of Abe to ask for a loan. If the bank faces a reserve requirement of 10 percent, what is the maximum amount that it can give Abby as a loan? C. b. Suppose the Bank of Abe faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $50,000 into his account at the Bank of Abe. If the bank takes no other action, what would be the value of its excess reserves? Assume the Fed's reserve requirement is 10 percent and all banks besides the Bank of Abe are exactly in compliance with the 10 percent requirement. Further assume that people hold only deposits and no currency. Starting from the situation as depicted by the T-account (i.e., do not take part (b) into account), if the Bank of Abe decides to make new loans so as to end up with no excess reserves, then by how much does the money supply eventually increase? Five people are taking classes this semester. They all need help with different subjects' homework assignments and have strengths in different areas, according to the information on table 1 below. Table 1: Strengths and needs of selected students Rosie helps with math HW wants help with science HW Bob helps with English HW wants help with history HW Piper Dewey Molly helps with math HW helps with science HW helps with science HW wants help with science HW wants help with English HW wants help with math HW If the school this semester could be described as a barter economy, which of pairs of students would be able to obtain the help that they need? 2. M&M Lady G. decides to forego a major appliance purchase and save the money. She transfers $2,100 from her checking account to her savings account. As a result of this transfer by itself, how are M1 and M2 affected? A) M1 increases by $2,100 and M2 stays the same. B) M1 increases by $2,100 and M2 increases by $2,100. C) M1 decreases by $2,100 and M2 increases by $2,100. D) M1 decreases by $2,100 and M2 stays the same. 3. Banking with Abe Table 1 shows the assets and liabilities of the Bank of Abe. Table 1: The Bank of Abe Assets Liabilities Reserves Loans $25,000 125,000 Deposits $150,000 a. Suppose Abby goes to the Bank of Abe to ask for a loan. If the bank faces a reserve requirement of 10 percent, what is the maximum amount that it can give Abby as a loan? C. b. Suppose the Bank of Abe faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $50,000 into his account at the Bank of Abe. If the bank takes no other action, what would be the value of its excess reserves? Assume the Fed's reserve requirement is 10 percent and all banks besides the Bank of Abe are exactly in compliance with the 10 percent requirement. Further assume that people hold only deposits and no currency. Starting from the situation as depicted by the T-account (i.e., do not take part (b) into account), if the Bank of Abe decides to make new loans so as to end up with no excess reserves, then by how much does the money supply eventually increase?
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Related Book For
Introduction To Health Care Management
ISBN: 9781284081015
3rd Edition
Authors: Sharon B. Buchbinder, Nancy H. Shanks
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