A corporation which has $70 billion in assets and $20 billion in net value should have $50 billion in liabilities. Reserves with a $20 billion surplus. $20 billion in liabilities. Reserves with a $50 billion surplus
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A corporation which has $70 billion in assets and $20 billion in net value should have
$50 billion in liabilities.
Reserves with a $20 billion surplus.
$20 billion in liabilities.
Reserves with a $50 billion surplus.
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- A bank that has assets of $70 billion and a net worth of $20 billion must have Multiple Choice liabilities of $50 billion. excess reserves of $20 billion. liabilities of $20 billion. excess reserves of $50 billion.A company that has $70 billion in assets and $20 billion in net worth must include $50 billion in liabilities. reserves with a $20 billion surplus. $20 billion in liabilities. reserves with a $50 billion surplus.To buy securities the Fed offers a high price and increases interest rates. True or False
- Banks hold reserves in order to: cover their customers' withdrawal needs. cover the banks' investments. offset their liabilities. satisfy stockholders.Banks can make loans as long as they have excess government securities. required reserves. deposits. excess reserves. reserves.Economic stealth bank has deposits of $700 million. And hold reserves of $20 million and has purchased government bonds worth $350 million. The banks loans, if sold at the current market value, would be worth $600 million. What is the value of the biggest total liabilities?
- Assets Reserves Loans Bank's Balance Sheet $150 $600 Liabilities and Owners' Equity Deposits Debt Securities $750 Capital (owners' equity) $1,200 Suppose a new customer adds $100 to his account at North Central National Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the The size of the monetary base $200 This would also bring the leverage ratio from its initial value of The reserve requirement $100 The total value of liabilities Which of the following do bankers consider when deciding how to allocate their assets? Check all that apply. account. to a new value ofCoin Bank has deposits of $350 million. It holds reserves of $30 million and government bonds worth $70 million. If the bank sells its loans at market value of $400 million, what will its total assets equal? $500 million $750 million $450 million $380 millionAssets Vault Cash Deposits at Fed Loans Total $50,000 $200,000 $600,000 $850,000 Liabilities and Net Worth First Southern's bank reserves are equal to $ checking deposits, First Southern' would maintain $ reserves over and above the desired amount. Deposits $850,000 Total The increase in the money supply will be $850,000 If First Southern bank wanted to maintain 0.10 of its assets as reserves against as reserves. Therefore, it would have $ as additional If First Southern uses the reserves above the desired level to extend additional loans, the money supply would increase by S If First Southern wanted to maintain 0.05 of its assets as reserves against checking deposits, First Southern' would maintain S as reserves, additional reserves would be $ and the increase in the money supply would be $ if First Southern chooses a desired reserve ratio of 0.05.
- QUESTION 12 If the Federal Reserve System sells $5 billion of government securities to commercial banks, the banks' reserves would increase by $5 billion be added to net worth. decrease by $5 billion. remain the same.Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $3 million, the monetary base is $15 million, and bank deposits are $35 million. Currency held by the nonbank public is $ million IMoney Market Equilibrium interest rate of 3% Graph & Fill in Blanks 1st Blank options are rise or fall 2nd Blank options are $0.25 billion, $0.5 billion, $1 billion 3rd Blank options are decrease or increase 4th Blank options are $0.5 billion, $1 billion, $0.4 billion 5th Blank Options are multiplier, crowding-out, automatic stabilizer, liquidity preference
