Macro Topic 4.6 Monetary Policy Part 1-Practice- For the following questions, assume that banks lend out...
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Macro Topic 4.6 Monetary Policy Part 1-Practice- For the following questions, assume that banks lend out all excess reserves and that all cash is redeposited into the banking system and the reserve requirement is 10%. "Note"- This is essentially 14 versions of the same question, but notice how small differences impact the answer. 1. If Kaci finds $1,000 under her bed and deposits in a bank, what is the immediate change in the money supply? 2. If Kaci finds $1,000 under her bed and deposits in a bank, what is the immediate change in checkable bank deposits (demand deposits)? 3. If Kaci finds $1,000 under her bed and deposits in a bank, what is the immediate change in the required bank reserves? 4. If Kaci finds $1,000 under her bed and deposits in a bank, what is the immediate change in the bank's excess reserves? 5. If Kaci finds $1,000 under her bed and deposits in a bank, what is the total maximum change in the money supply? 6. If Kaci finds $1,000 under her bed and deposits in a bank, what is the total maximum change in checkable bank deposits (demand deposits)? 7. If Kaci finds $1,000 under her bed and deposits in a bank, what is the total maximum change in loans? 8. If the central bank buys $1,000 worth of bonds from a bank, what is the immediate change in the money supply? 9. If the central bank buys $1,000 worth of bonds from a bank, what is the immediate change in checkable bank deposits (demand deposits)? 10. If the central bank buys $1,000 worth of bonds from a bank, what is the immediate change in required bank reserves? 11. If the central bank buys $1,000 worth of bonds from a bank, what is the immediate change in the bank's excess reserves? 12. If the central bank buys $1,000 worth of bonds from a bank, what is the total maximum change in the money supply? 13. If the central bank buys $1,000 worth of bonds from a bank, what is the total maximum change in checkable bank deposits (demand deposits)? 14. If the central bank buys $1,000 worth of bonds from a bank, what is the total maximum change in required reserves in the banking system? Macro Topic 4.6 Monetary Policy Part 1-Practice- For the following questions, assume that banks lend out all excess reserves and that all cash is redeposited into the banking system and the reserve requirement is 10%. "Note"- This is essentially 14 versions of the same question, but notice how small differences impact the answer. 1. If Kaci finds $1,000 under her bed and deposits in a bank, what is the immediate change in the money supply? 2. If Kaci finds $1,000 under her bed and deposits in a bank, what is the immediate change in checkable bank deposits (demand deposits)? 3. If Kaci finds $1,000 under her bed and deposits in a bank, what is the immediate change in the required bank reserves? 4. If Kaci finds $1,000 under her bed and deposits in a bank, what is the immediate change in the bank's excess reserves? 5. If Kaci finds $1,000 under her bed and deposits in a bank, what is the total maximum change in the money supply? 6. If Kaci finds $1,000 under her bed and deposits in a bank, what is the total maximum change in checkable bank deposits (demand deposits)? 7. If Kaci finds $1,000 under her bed and deposits in a bank, what is the total maximum change in loans? 8. If the central bank buys $1,000 worth of bonds from a bank, what is the immediate change in the money supply? 9. If the central bank buys $1,000 worth of bonds from a bank, what is the immediate change in checkable bank deposits (demand deposits)? 10. If the central bank buys $1,000 worth of bonds from a bank, what is the immediate change in required bank reserves? 11. If the central bank buys $1,000 worth of bonds from a bank, what is the immediate change in the bank's excess reserves? 12. If the central bank buys $1,000 worth of bonds from a bank, what is the total maximum change in the money supply? 13. If the central bank buys $1,000 worth of bonds from a bank, what is the total maximum change in checkable bank deposits (demand deposits)? 14. If the central bank buys $1,000 worth of bonds from a bank, what is the total maximum change in required reserves in the banking system?
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Answer rating: 100% (QA)
1 If Kaci finds 1000 under her bed and deposits in a bank what is the immediate change in the money supply Answer The immediate change in the money supply would be 1000 This is because the 1000 deposi... View the full answer
Related Book For
International Economics
ISBN: 978-1429278447
3rd edition
Authors: Robert C. Feenstra, Alan M. Taylor
Posted Date:
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