Does the bank have any excess reserves

Assignment Help Econometrics

Reference no: EM13192307

Assets:
Vault Cash: $20,000
Deposits at Fed $30,000
Securities $45,000
Loans $120,000

Liabilities:
Checking Deposits $200,000
Net Worth $15,000

Suppose that the reserve requirement is 10 percent and the bank's balance sheet looks like the example above.

a. What are the required reserves? Does the bank have any excess reserves?
b. What is the maximum loan that the band could extend?
c. How would the bank's balance sheet would be altered if it extended this loan?
d. Suppose the required reserves were 20 percent. If this were the case. would the bank be in a position to extend any additional loans?

Reference no: EM13192307

Questions Cloud

What type of growth pattern is represented here : What type of growth pattern is represented here?

How high is the stone 6 seconds later : Given that the acceleration due to gravity is -32 ft/sec^2, how high is the stone 6 seconds later?

State the structure of a protein by both nmr : the structure of a protein by both NMR and X-ray crystallography and they differ in one region. Which is more likely to be the true structure of the protein when dissolved in solution? Why?

Also how would you find mean for this frequency distribution : Also how would you find the mean for this frequency distribution?

Does the bank have any excess reserves : c.How would the bank's balance sheet would be altered if it extended this loan d. Suppose the required reserves were 20 percent. If this were the case. would the bank be in a position to extend any additional loans

State how many mole of sodium hydroxide : How many mole of sodium hydroxide is contained in a lye solution in which 130 grams of sodium hydroxide

Use a graphing calculator : Use a graphing calculator, a spreadsheet, or mathematical software to obtain the solution. Find the APR on a 20-year mortgage of $562,000 carrying a stated interest rate of 4.5% compounded monthly and seven points.

How much money will be in the account upon retirement : If you are 18 years old, deposit $3,660 each year into a Roth IRA for 52 years at 3.9% interest compounded annually, and retire at age 70, how much money will be in the account upon retirement?

What percentage of the principal will be paid off : If you take out a 20-year mortgage at 6.4% interest compounded monthly, what percentage of the principal will be paid off after 10 years? (Round your answer to two decimal places.)

User Account

All Pages