Suppose the required reserve ratio is 0.20. Total bank deposits are $200 million and the bank holds

Fantastic news! We've Found the answer you've been seeking!

Question:

Suppose the required reserve ratio is 0.20. Total bank deposits are $200 million and the bank holds $50 million in reserves. How much more money could the bank create if it does not hold excess reserves?

Related Book For answer-question

Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

See More Books

Posted Date: Mar 03, 2024 05:03 AM

See More Questions

1). If the required reserve ratio is 10%, how much money can this bank create? 2). The required reserve ratio is 10%. if the bank makes a loan of the maximum amount possible, how much will be in...
1. A bank borrows $100,000 from the Fed, leaving a $100,000 Treasury bond on deposit with the Fed to serve as collateral for the loan. The discount rate that applies to the loan is 4 percent, and the...
The money supply (M) is the sum of bank deposits (D) plus currency in the hands of the public (Call that C). Suppose the required reserve ratio is 20 percent and the Fed provides $50 billion in bank...
1.think about the evolution of the food industry, What was it in the past, and what will it be in the future? How will the 4 p's of marketing evolve within the industry you selected? 2.What is one...
Should a manager for an LLC respond to employee complaints of discrimination any differently from a manager at a corporation, a partnership, or a sole proprietorship? Why or why not?
Family members are presumed not to intend legal relations while business people are subject to the opposite presumption, namely that an intention to create legal relations is intended. Why should the...
The agreement contained a liquidated damages clause that held, Should Employee voluntarily terminate or the Employer terminates his/her employment within one year of executing this Agreement,...
Morse Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2012...
(a) Find the local extrema and saddle points of the function (x,y) = + -2y-xy+y+1 (b) Use Taylor's approximation around the point (x,y)=(0,0) to obtain an approximation of the above function up to...
Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group...
On 12/15/2020, Abbott paid a $100 dividend in CASH. The ownership structure is as follows: Erin Rogers own 50% of the outstanding shares, Giannis Antetokoumpo owns 20% of the outstanding shares and...
4. For the given relational schema identify the FDs. Based on the FDs identify the PK. Cust id Cust name Cust addr Acc type balance Accno ACC100 C100 John Vellore Savings 100000 C200 Peter Chennai...
a. You purchase a stock for $9,000 and collect $300 at the end of each year in dividends. You sell the stock for $10,500 after five years. What was the annual return on your $9,000 investment? %= b....
Last year, Rebecca's Bookstore had $1 million in sales. She spent $590,000 to buy the books that she sold and paid out $300,000 in operating expenses. Interest and taxes came to $3,000. What was...
3. What Kind of Bear are You? [25 points] You are at your cabin in the deep woods and have taken many pictures of bears - some of them are grizzly bears, some of them are brown bears, and some of...
What are the possible consequences of accepting inaccurate methodology of computing cost of capital on AES? Explain
Q NO 07. Determine both i, and i, in the following circuit diagram for t>0? (40 Marks) 120 2 60 ele I mH t =0 50 18 V 90 2 mH 3 mH elll
Read the case study Richter: Information Technology at Hungarys Largest Pharma and answer the following question: How does the organization ensure the accuracy of the data it stores?
Explain the basic logic behind the multiplier in words. Why does it require b, the marginal propensity to consume, to be between 0 and 1?
Consider an economy described by the following set of equations: C = 120 + 0.80DI I = 320 G = 480 (X - IM) = -80 T = 200 + 0.25Y Find the equilibrium level of GDP. Next, find the multipliers for...
Which of the following transactions are included in the gross domestic product, and by how much does each raise GDP? a. You buy a new Toyota, made in the United States, paying $25,000. b. You buy a...
When the price of ketchup rises by 18 percent, the demand for hot dogs falls by 2 percent. a. Calculate the cross-price elasticity of demand. b. Are the goods complements or substitutes? c. In the...
Would you expect a shift in supply to have a greater effect on equilibrium quantity in the short run or in the long run? Explain your answer.
Why isnt the combination of consumer and producer surplus maximized if there is either excess demand or supply?

Suppose the required reserve ratio is 0.20. Total bank deposits are $200 million and the bank holds

Question:

Expert Answer:

Calculate the required reserves Required reserves Required re... View the full answer

Macroeconomics Principles And Policy

Students also viewed these economics questions