Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. Assets Liabilities Reserves 32 Deposits 205 Loans 150 Securities 53 Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8% (Give answers to 2 decimal places as needed)

Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. Assets Liabilities Reserves 32 Deposits 205 Loans 150 Securities 53 Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8% (Give answers to 2 decimal places as needed)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 30P: A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It...

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Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 44Deposits 255Loans 155 Securities 51Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 6%(Give answers to 2 decimal places as needed)
BALANCE SHEET OF BANK A (S IN MILLIONS) ASSETS LIABILITIES and NET WORTH Reserves (Cash/Reserves at Fed) 550 Demand Deposits $100 Losns 20 Govt. Securities 90 Net Worth (Owners' Equity) What is the net worth of this bank? 2. If the required reserve is 10%, what is the amount of REQUIRED RESERVES that this bank must bold? 3. What then is the mount of EXCESS RESERVES that this bank is now holding? How much does this bank have available for NEW LOANS? 5. If the required reserve is increased to 20%, whal is the amount of REQUIRED RESERVES that this bank must bold?
Consider the following balance sheet of Berjaya Bank. The required reserve ratio on demand deposits is 8%. Berjaya Bank Aset / Assets (million $) Rizab / Reserves Pinjaman / Loans Sekuriti / Securities Liabiliti / Liabilities (million $) Deposit semasa Demand deposits Modal bank / Net Worth 30 290 150 140 30 1. Calculate the bank's excess reserves 2. Suppose Berjaya Bank sells $40 million of its securities to the central bank. Show the balance sheet of Berjaya Bank after this transaction
If the bank at which you keep your checking account isowned by foreigners, should you worry that your depositsare less safe than if the bank were owned by Americans?
1. You deposit $100 of currency into your account. Explain what happens to reserves , checkabledeposits, and monetary base? 2. Explain what the shadow banking system is and how it works. 3. Your bank has the following balance sheet:Assets LiabilitiesReserves $70 million Checkable deposits $200 millionSecurities $50 millionLoans $130 million Bank capital $50 millionIf the required reserve ratio is 10%, what actions should the bank manager take if there is anunexpected deposit outflow of $50 million? Explain your answer. 4. Explain and demonstrate graphically that if the central bank pursues targeting a monetaryaggregate, it is likely to lose control over the interest rate. 5. In the market for reserves, the federal funds rate is equal to the interest rate paid on excessreserves. Explain and demonstrate graphically the effect of an open market sale on the federalfunds rate.
1. A banks assets can be described as the a. Value of the loans and the estimates about the risk that customers will not repay those loans b. Value of the loans and the estimates about the risk that customers will repay those loans c. Value of the loans and the estimates about the risk that firms will purchase those loans d. Value of the loans and the estimate about the risk that firms will repay those loans 2. Banks are able to create money in the economy if a. Banks loan out there excess reserves b. Banks do not loan out part of their excess reserves c. Banks hold all of their deposits as required reserves d. Banks purchase US government securities with all of their excess reserves 3. The characteristic of money that is acceptable to make purchases today that will be paid in the future is known as a a. Store of value b. Standard of deferred payment c. Unit of account d. Transaction cost
When you open a savings account, you and your joint account holder will need these fouritems. Put a checkmark next to or highlight, in the image below, the items you knowyou/your parent/guardian already have and circle any items you would need to work onobtaining
assume the required Reserve ratio is 12 for scientific Commercial Bank has actual reserves of 15,000 loans of 85,000 and checkable deposits of 80,000 what is required reserves a 5,400 B 9600 C 15,000 D 80,000
Table 1 shows the financial position of the Smithville Bank once $4441.00 has been deposited. Assume that the required reserve ratio is 7.00%. Table 1. Original Assets and Liabilities The bank manager decides to lend Billy Bob Smith all of Assets Liabilities the bank's excess reserves. Billy Bob takes the funds to Eula Mae's Used Machines and buys a pickup truck. Eula reserves: $4441.00 deposits: $4441.00 Mae then deposits the money in her account back at the Smithville Bank. Table 2. Assets and Liabilities After Bank Makes a Loan Table 2 should show the bank's accounts after the loan is made and the funds again deposited. Round all answers to Assets Liabilities the nearest cent. reserves: ? deposits: ? loans: ? What are the bank's loans in Table 2? What are the bank's reserves in Table 2? What are the bank's deposits in Table 2? %24 %24 %24
Table 2 First National Bank Assets Liabilities and Owners' Equity Reserves $1,200 Deposits $9,000 Loans $8,000 Debt $800 Short-term securities $800 Capital (owners' equity) $200 Refer to Table 2. The required reserve ratio is 6 percent and First National Bank sells $150 of its short-term securi to the Federal Reserve. This action will increase First National's reserves by S150. Its excess reserves are $240. decrease First National's reserves by $150. Its excess reserves are $0. increase First National's reserves by $150. Its excess reserves increase by $150. increase First National's reserves by $150. Its total reserves increase by $150. both c and d above
2. Assets Liabilities Total Reserves 2,000,000 Transaction Deposits Required Excess Govt. Sec. 2,225,000 Loans Total Assets Total Liabilities a. Assume the required reserve rate is 20%. What are required reserves for this bank? b. What are transactions deposits and total liabilities for the bank? c. How much more money can this bank loan out at this time? Wells Fargo Bank 750,000
12. Bank pass book is also known as A. O Bank book B. O Bank account C. O Bank column D. O Bank statement