Bank reserve ratio, Suppose the required reserve ratio is

Bank reserve ratio

Assignment Help Managerial Economics

Reference no: EM13912835

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?

A. $5 million

B. $25 million

C. $30 million

D. $50 million

Reference no: EM13912835

Questions Cloud

Covert operations : What is wrong with this surveillance log-Why is it important to take detailed notes during surveillance and covert operations

Bidding for government contracts : You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your product is better than the competition.If this legislation is passed, by how much should you expect your profits to chang..

Market inverse demand function : Suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P = 250 -5Q, and the firm’s cost function is C(Q) = 6Q. Determine the firm’s equilibrium price and corresponding profits.

Payroll tax liability : Prepare the general journal entry to record the employer's payroll liability-Prepare the general journal entry to record the employer's payroll tax liability.

Bank reserve ratio : 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?

Produces vacuum cleaners : Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistic ally competitive market

Percent of money in reserves : While Jon is walking to school one morning, a helicopter flying overhead drops a $100 bill. Not knowing how to return it, Jon keeps the money and deposits it in his bank. (No one in this economy holds currency.) If the bank keeps 5 percent of its mon..

Describes the labor costs : Which of the following describes the labor costs that should be incurred under forthcoming efficient operating conditions

Pounds of material : The material has a standard price of $10 per pound. During November the company purchased and used 15,000 pounds of material

User Account

All Pages