Why would a bank ever hold excess reserves rather than make new loans?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
At times banks conclude that making loans is too risky ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
For each of the following situations, determine whether the money supply will increase, decrease, or stay the same. a. Depositors become concerned about the safety of depository institutions. b. The...
-
Suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, and excess reserves are $15 billion. a. Calculate the money supply, the currency deposit ratio,...
-
Excess reserves make a bank less vulnerable to runs. Why, then, dont bankers like to hold excess reserves? What circumstances might persuade them that it would be advisable to hold excess reserves?
-
Ilana Mathers, CPA, was hired by Interactive Computer Installations to prepare its financial statements for March 2017. Using all the ledger balances in the owner's records, Ilana put together the...
-
Consider the system shown in Figure, where? Sketch y c (j?) if X c (j?) is as shown in Figure 1. lwl < 1/L. 0. 7/L < lw
-
A specimen 750 mm (30 in.) long of an S-590 alloy is to be exposed to a tensile stress of 80 MPa (11,600 psi) at 815C (1500F). Determine its elongation after 5000 h. Assume that the total of both...
-
Are Carbon or Steel Bikes Faster? Dr. Jeremy Groves was interested in whether his carbon bike or his steel bike led to a shorter commute time. To answer this, he flipped a coin each day to randomly...
-
The manager at a water park constructed the following frequency distribution to summarize attendance for 60 days in July and August. Attendance ......Frequency 1,000 up to 1,250 ..... 5 1,250 up to...
-
Module: Market Share Metrics 2 / Problem Set ID: 1044 es Spring 2024 All-over Shampoo is a leading brand in the company's western sales region. Of the 660,000 households in the region, 500,000...
-
Three soccer teams A. B, and C, play each other once. Each match is between two (earns, and can be won, drawn, or lost. Each team has a fixed, unknown degree of quality an integer ranging from 0 to...
-
If all banks heeded Shakespeare's admonition "Neither a borrower nor a lender be," what would happen to the supply of money?
-
What percent of the money supply depicted in Figure 13.1 is cash? Figure 13.1 - Total money supply ($3,100 billion) $1,345 Curroncy in circulation $1,752 Transactions account balancos $3 -Traveler's...
-
Find the domain of each rational expression. 12 x2 + 5x + 6
-
A company uses sandpaper in its production process. How is the cost of the sandpaper classified?
-
If the unit sales price is $12, the unit variable costs $7, and fixed costs are $360,000. How many units must be sold to earn a profit of $39,000?
-
You invest $800 at an annual rate of 8% for 12 years. How much more interest would you earn with compound interest than with simple interest for (a) the whole 12 years; and (b) in just year 7 by...
-
CE #1 Spring 2024 ACCT 2110-Online Due: Friday, January 26th Item 1 Use the following accounts and information to prepare, in good form, an income statement and a retained earnings statement, for the...
-
Using the Terminal Tutorial as a guide, assess the potential impact of the merger on Disney as of the end of 2018. What is the net impact? Is it accretive or dilutive? By how much?
-
Early in 2020, Crow Equipment sold 500 Rollomatics at $6,000 each. During 2020, Crow spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions...
-
An 8.0 kg crate is pulled 5.0 m up a 30 incline by a rope angled 18 above the incline. The tension in the rope is 120 N, and the crates coefficient of kinetic friction on the incline is 0.25. a. How...
-
Does a change in producers technology lead to a movement along the supply curve or to a shift in the supply curve? Does a change in price lead to a movement along the supply curve or to a shift in...
-
Does a change in producers technology lead to a movement along the supply curve or to a shift in the supply curve? Does a change in price lead to a movement along the supply curve or to a shift in...
-
1. A life-saving medicine without any close substitutes will tend to have a. a small elasticity of demand. b. a large elasticity of demand. c. a small elasticity of supply. d. a large elasticity of...
-
Reflecting on the book Who Gets Promoted, Who Doesn't, and Why (Asher, 2008), answer the following questions in depth. Explain the statement, "all business is sales." What six things matter? If...
-
Reflecting on the book Who Gets Promoted, Who Doesn't, and Why (Asher, 2008), answer the following questions in depth. No matter what you have done in the past, the boss really doesn't care. Why?...
-
Do you think Richard Scrushy should have been found guilty or acquitted for his role in the case against HealthSouth? https://www.wsj.com/articles/SB111702610398942860
Study smarter with the SolutionInn App