Calculate er for an entire economy

Assignment Help Business Economics
Reference no: EM132355061

Economy G, which contains Bank One. Bank One has $10,000 cash in its vaults and $8,000 US government bonds, as well as $22,000 Deposit in the Fed. It has $250,000 in checking and $100,000 in savings deposits. It uses our default rr and its residents hold $50,000 in currency (cash).

Calculate Bank One's er (desired excess reserves ratio). (We usually calculate er for an entire economy, but we'll do it this way for now.) Round your answer to three decimal places; don't convert to percent.

Reference no: EM132355061

Questions Cloud

What distinguishes a natural monopoly from other monopolies : What are the pros and cons of regulating natural monopolies? Does it depend on the specific product or industry being regulated?
Marginal revenue to find the profit-maximizing output : Do firms really calculate marginal cost and marginal revenue to find the profit-maximizing output?
Demand for electricity and ended up paying : People did reduce their demand for electricity and ended up paying higher prices for it! How could such a thing happen?
What are the reasons why cybersecurity : What are the reasons why cybersecurity breach is not reported by companies?
Calculate er for an entire economy : Calculate Bank One's er (desired excess reserves ratio). (We usually calculate er for an entire economy, but we'll do it this way for now.)
Production line that constantly needs maintenance : You supervise an aging production line that constantly needs maintenance and new parts. Last month you spent $25,000 replacing a failed controller.
Encouragement of prostitution was immoral to begin : If you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral?
Federal reserve can use open market operations : Explain how the Federal Reserve can use open market operations, reserve requirement, and fed funds/discount rate policies to resolve an economy
Why do you think it is necessary for managers : Why do you think it is necessary for managers to ignore profit margin (average profit) when making an optimal decision?

Reviews

Write a Review

Business Economics Questions & Answers

  Irrespective of what the price of comic books

Tom Brady gets $200 per week as allowance. Irrespective of what the price of comic books is, he spends exactly $100 on comic books every week. Taking absolute values, Tom’s elasticity of demand for comic books is. Suppose Jerry tells us his preferenc..

  How does the federal reserve monetary policy affect

How would you evaluate monetary policy and fiscal policy today?  Is monetary policy contradictory with fiscal policy? Why or Why not?  Support your analysis with examples.

  Couple can hold fred liable in contract for the services

Daniel, a recent college graduate, is on his way home for the Christmas holidays from his new job. He gets caught in a snowstorm and is taken in by an elderly couple, who provide him with food and shelter. After the snowplows have cleared the roads, ..

  Determine the optimal demand per month and profit at demand

The total fixed costs for manufacturing a product each month is $8,000. The variable cost per unit consists of direct labor, material and overhead. The labor will be based on the 25th unit and an 85% learning curve is expected to apply to the number ..

  What might have caused those advertisers expenditures

Look at those whose advertising went down by double digits from the prior year. Speculate about what might have caused those advertisers' expenditures to decline.

  What would happen to prices in market equilibrium

Suppose you can hire 10 workers for $12 each, but to hire the 1 worker you will have to pay all your workers $15 each. What is marginal cost of hiring the 11th worker. explain what would happen to prices in a market equilibrium if there is an increas..

  Project have a positive or negative rate of return

Does the following project have a positive or negative rate of return? Show how this is known to be true.

  Firm has constant marginal-average cost of producing good

The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce widgets. Each firm has a constant marginal and average cost of producing the good that equals 10. Firms compete in quantities and they make their quantity c..

  What is present value of the bond

If the annual rate of discount is 3 percent, what is present value of the bond?

  Enforce anti-discrimination policies

Draw simple labor supply and demand graphs for the occupations of school teachers and plumbers to show the labor market in each profession.  Show the reduction in output from discrimination. Show the economic gains from eliminating discrimination. Wi..

  Applying the concepts of opportunity cost

The learning objectives are applying the concepts of opportunity cost, comparative advantage, and absolute advantage.

  Asset prices and households on fixed incomes

Inflation is an important policy issue because it causes a redistribution of income and wealth, and discourages saving and investment. Discuss how inflation affects borrowers and lenders, asset prices, and households on fixed incomes.

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!

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