Calculate its excess reserves of banks

Assignment Help Econometrics
Reference no: EM13205238

Suppose that the reserve requirement is 3% on the first 30 million of checkable deposits and 10% on the checkable deposits in excess of 30 million. (Amounts on the balance sheet are in millions of $)

Assets- Reserves 15.9, Loans 150.0, Securities 34.1 total 200.0. Liabilities + Capital- Transactions Deposits- 180.0, Equity Capital 20.0 total - 200.0. A-Calcualte the banks excess reserves. B-Suppose that the bank sells 5 million in securities to get new cash. Show the banks balance sheet after this transactioin. What are the bank's excess reserves? C- Suppose that the bank makes a loan to a customer equal to the amount of its excess reserves from part B. Show the bank's balance sheet before the customer spends the proceeds of the loan. What are the bank's excess reserves? D- Suppose that the customer spends the proceeds of the loan. Show the banks's balance sheet, and calculate its excess reserves.

Reference no: EM13205238

Questions Cloud

The role of media violence in violent crime : The Role of Media Violence in Violent Crime Has Been Exaggerated and Media Violence Promotes Violent Behavior
Workplace has a speech code : Find out if your workplace has a "speech code." If it doesn't, find a college or university with one. Would this code stand up to a constitutional test? Why or why not?
Partnering with a marketing firm : What considerations should an administrator take into account when looking at partnering with a marketing firm? How would you choose a company to help you market your practice?
Evaluate the firms required rate of return : Explain briefly: total risk, diversifiable risk and market risk and why are these concepts important and Moerdyk Company's stock has a beta of 1.40, the risk-free rate is4.25%, and the market risk premium is5.50%.What is the firm's required rate of r..
Calculate its excess reserves of banks : Suppose that the reserve requirement is 3% on the first 30 million of checkable deposits and 10% on the checkable deposits in excess of 30 million. (Amounts on the balance sheet are in millions of $) Assets- Reserves 15.9, Loans 150.0, Securities 3..
Define benzoic acid dissociates in water : Benzoic acid is a weak acid that has antimicrobial properties. Its sodium salt, sodium benzoate, is a preservative found in foods, medications, and personal hygiene products. Benzoic acid dissociates in water:
Calculate its excess reserves of banks : Suppose that the reserve requirement is 3% on the first 30 million of checkable deposits and 10% on the checkable deposits in excess of 30 million. (Amounts on the balance sheet are in millions of $) Assets- Reserves 15.9, Loans 150.0, Securities 3..
Explain microwave electromagnetic radiation : Microwave ovens heat food by creating microwave electromagnetic radiation that is absorbed by water molecules in the food. Any material that does not have water in it will not absorb the radiation and will not get hot.
Should the owner of the store increase the price : If the price of a bottled water increases from $1.50 to $1.75, and demand decreases from 100 to 89 (per day), what is the price elasticity of demand Is it elastic or inelastic Should the owner of the store increase the price to $1.75 to increase t..

Reviews

Write a Review

Econometrics Questions & Answers

  What is the minimum internal rate of return

company is currently considering the following possible projects (which are NOT mutually exclusive). You have a budget limitation of $400,000. What is the minimum internal rate of return that a NEW project (in addition to these) would need to ea..

  Compute the annual income you will receive during retirement

Assume that savings are invested at the end of each calendar year. Assume that during your working life you earn a return of 8% per year, and that when you retire at age 65 you move your assets into more conservative investments and earn a return ..

  What is average variable and marginal cost

Supposed that firms only variable input is labor when 50 workers are used, the average product of labor is 50, and marginal product of the 50th workers is 75. The wage rate is $80, and the total worker is 75. Wage rate is $80

  Define firms production function

For the isocost line, clearly identify the vertical and horizontal intercepts. For the isoquant, clearly identify 5 combinations of Labor and Capital that will produce Q = 20 (including the bundle that minimizes the firm's cost of production). M..

  What is the effective interest rate made in investment

In January of 2007 Mary bought 100 stocks of Apple Inc for $55 each. this stock paid an average dividend of $4.50 per stock until the end of each year until mary sold all the stocks in December 2012 for $75.50 each. What is the effective interes..

  Find variables in open economy aggregate expenditure model

given the following variables in the open economy aggregate expenditure model, autonomus consumption=200, autonomus investment=200, government spending=100, export spending=100, taxes=0, marginal propensity to consume=0.8

  Is this simultaneous output decision a prisoners dilemma

Suppose the firms colluded to fix output at QS = 90 and QW = 70. Fill in the missing price and profit information in the payoff table below, where the other output choice is the output for each firm that you determined above.

  Determine the linear trend

The given information is the quarterly sales of gasoline in the U.S. in millions of barrels during part of the 1980s and the 1990s. Determine the linear trend and use it to forecast sales for first quarter of 1992.

  What are the monopolistic market price

A monopolist has a linear inverse demand of: P(q) = 100 - (1/4)q and has a cost function of: C(q) = 2438 + 4q What are the monopolistic market price, quantity and prots

  Find the equilibrium level of income

Find the equilibrium level of income (Y*). Construct an aggregate expenditures model showing this information. What happens to RGDP if government spending decreases by $5 billion? Provide specific numbers. Suppose this economy opens up to trade. If..

  What is the marginal cost and average total cost for firm

Below is a table with total data for a firm in a perfectly competitive industry. Quantity Total Cost 0 100 10 220 15 300 20 360 25 450 30 600 35 770 40 960 What is the marginal cost and average total cost for the firm at each level of output

  Calculate the level of incremental profit per unit

Barney Rubble, marketing director for Flintstones, is considering whether or not the company should market its product directly to end users for $300 per unit. Although no added investment in productive facilities is required, there are additional..

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