Suppose a member of the non-bank public deposits $100 million cash into their bank account. Show...

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Suppose a member of the non-bank public deposits $100 million cash into their bank account. Show the effect of this transaction as follows: i) State the dollar amount and type of asset or liability for each T-account. Indicate if the assets or liabilities are positive or negative ii) Assets Blank 1: Blank 2 Assets Blank 3: Blank 4 Nonbank Public Liabilities (1 mark) Banking System Liabilities (1 mark) i) is the monetary base affected by the increase in the public's deposit? (1 mark) ii) Are reserves affected by public's increase in deposits? If yes, how? (1 mark) Suppose a member of the non-bank public deposits $100 million cash into their bank account. Show the effect of this transaction as follows: i) State the dollar amount and type of asset or liability for each T-account. Indicate if the assets or liabilities are positive or negative ii) Assets Blank 1: Blank 2 Assets Blank 3: Blank 4 Nonbank Public Liabilities (1 mark) Banking System Liabilities (1 mark) i) is the monetary base affected by the increase in the public's deposit? (1 mark) ii) Are reserves affected by public's increase in deposits? If yes, how? (1 mark)

Answer rating: 100% (QA)

i On Nonbank Public Account deposits of 100 million will be shown as outgoing asset Because amount i... View the full answer