By how much can the bank increase its loans

Assignment Help Econometrics

Reference no: EM131309014

You are given this account for a bank:

The required reserve ratio is 10 percent.

a. How much is the bank required to hold as reserves given its deposits of $3,500?

b. How much are its excess reserves?

c. By how much can the bank increase its loans?

d. Suppose a depositor comes to the bank and withdraws $200 in cash. Show the bank's new balance sheet, assuming the bank obtains the cash by drawing down its reserves. Does the bank now hold excess reserves? Is it meeting the required reserve ratio? If not, what can it do?

Reference no: EM131309014

Questions Cloud

Create a gas price windows form application : Create a "Gas Price" Windows Form Application, Allow user to enter gas prices for 12 month from the textbox and click the Enter button. Create a 12 element 1-dimensional array of Decimal type.

Compare and contrast the b2c versus b2b buying behavior : Compare and contrast the B2C versus B2B Buying Behavior for a current product on the market today. Use the same product for both the B2C and B2B situation.Discuss any similarities or differences between the two. Use real-life examples in your analy..

Write a report on the network management tools associated : In this paper, you will research and report on network management tools associated with (1) policy compliance, (2) bandwidth management, and (3) asset management.

Organizational structure of mcdonald : How should Easterbrook adapt the organizational structure of McDonald's to achieve his strategic plan?

By how much can the bank increase its loans : Does the bank now hold excess reserves? Is it meeting the required reserve ratio? If not, what can it do?

Describe the industry structure : Describe the industry structure. Include things such as competition, suppliers, material changes, pricing, etc. Make your answer somewhat predictive of how you believe the industry is evolving.

Draw conclusions about geographic concentration of prospects : Draw conclusions about the geographic concentration of prospects. Write a brief report-within the body of an email-to the CEO; include your table and your conclusion.

Executive information systems : Read the journal article, "Executive Information Systems: Their impact on Executive Decision Making". Based on the information presented in the article, discuss the following:

What is before-tax cost of capital for this debt financing : Black Hill Inc. sells $100 million worth of 19-year to maturity 9.56% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $995 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

User Account

All Pages