User Account

All Pages

Bank reserves and checkable deposits

Assignment Help Business Economics
Reference no: EM131423816

1. Suppose a bank with a 25% reserve requirement has $50 million in reserves and $200 million in checkable deposits, and one of the bank's depositors, a major corporation, writes a check to another corporation for $5 million. The check is deposited in another bank.

a. Explain how the withdrawal affects the bank's reserves and checkable deposits.

b. By how much will the bank have to reduce its lending?

2. Suppose the bank in problem 1 faces a 20% reserve requirement. The customer writes the same check. How will this affect your answers?

Reference no: EM131423816

Questions Cloud

What is meant by quality function deployment : Identify a new system requirement and apply the QFD process (or something of an equivalent nature) in defining the specific characteristics that should be included in the design (demonstrate the application by applying QFD to a real situation).
How is your concept of the american dream : how is your concept of the American Dream and the jobs it takes to get there changing? Think in terms of differences and similarities. Are the things that Barbara Ehrenreich describes similar or different than your experience? How?
Explain how a service project with international component : Explain how a service project with an international component may require unique consideration in project initiation and project planning as opposed to a physical product type project.
Evaluate two advantages for a health care administrator : Evaluate two (2) advantages for a health care administrator to engage the services of a consultant to improve the functions of HR
Bank reserves and checkable deposits : a. Explain how the withdrawal affects the bank's reserves and checkable deposits. b. By how much will the bank have to reduce its lending?
Value of having available standard forms of contracts : What is the purpose and value of having available standard forms of contracts? What are some examples you are familiar with where standard forms are used? Do you think a simple hand shake can replace all contracts?
What is meant by functional analysis : What is the purpose (i.e., possible benefits derived) of developing an objectives tree (or equivalent)?
How many frisbees are being sold in equilibrium : (a) How many Frisbees are being sold in equilibrium? (b) How many (identical) firms are initially producing Frisbees?
Statements about project scope management : Which of the following statements about project scope management are correct?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd