Assignment on changes in monetary policy

Assignment Help Finance Basics

Reference no: EM13781310

Assignment On Changes In Monetary Policy

Assume that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place:

BALANCE SHEET FOR ECOVILLE INTERNATIONAL BANK

ASSETS LIABILITIES

Cash $33,000 Demand deposits $99,000

Loans $66,000

Now assume that the Fed lowers the reserve requirement to 8%.

a. What is the maximum amount of new loans that this bank can make?

b. Assume that the bank makes these loans. What will the new balance sheet look like?

c. By how much has the money supply increased or decreased?

Assignment 2 Grading Criteria Maximum Points

Met the criteria for the correct responses to the questions assigned.

Used vocabulary relevant to this week's topics-at least five terms.

Submitted a well-structured report, free of spelling and grammatical errors and cited sources in APA format when necessary.

Justified ideas and responses by using appropriate examples and references from texts, Web sites, and other references or personal experience.

Reference no: EM13781310

Questions Cloud

Assignment on creating a small network : Creating a Small Network

What kinds of adjustments do chinese companies : Read the article and consider the issues involved in Chinese acquisitions and mergers abroad. What kinds of adjustments do Chinese companies need to make to succeed in these ventures

Test of manual dexterity-person dexterity anxiety : Explain the logic of what you have done, writing as if you are speaking to someone who has never heard of correlation (but who does understand the mean, standard deviation, Z scores, and hypothesis testing).

How are background sources most relevant to researchers : How are background sources MOST relevant to researchers? We can expect that the work of research will NOT provide us with which of the following?

Assignment on changes in monetary policy : Assume that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place

Define the concept of economic tiger : In your opinion, should economic tigers be feared or tamed? Why - Define the concept of "economic tiger." If you chose "feared," how does this impact other global economies and powers?

Contingency table for the appropriate variables : Problem similar to one in your database about the Springdale Mall survey, I just have different data sets. I am having a hard time getting started on question two.

How the criminal justice system works : This assignment is to demonstrate your mastery of how the criminal justice system works. This assignment is designed to give you an opportunity to display your knowledge of the parts and processes of the criminal justice system

Formulate the null hypothesis : The CEO of ABC manufacturing commissioned a study to look at the differences between the current salaries of her employees by employee job title. There were three job categories: clerical, custodial, and managerial.

User Account

All Pages