Explain how this relates to the federal funds rate

Assignment Help Business Economics

Reference no: EM13831263

1. If a bank has deposits totaling $200,000, and their reserve requirement is 10%, what is the total on their required reserves?

2. If that bank had total reserves equaling $50,000, what are their excess reserves?

3. What will banks likely do with their excess reserves? Explain how this relates to the federal funds rate.

Reference no: EM13831263

Questions Cloud

Most republicans want to reduce federal spending : The U.S. Congress debates the new budget every fiscal year. Most Republicans want to reduce federal spending; most Democrats do not want to reduce spending and may, in some cases, seek to increase it.

Elements of the statement of cash flows : Elements of the Statement of Cash Flows

Acceptable because of which principle/guideline : A company purchases a $12250 digital watch and expenses it immediately instead of recording it as an asset and depreciating it over its useful life. This practice may be acceptable because of which principle/guideline?

Means-tested college aid-base college aid primarily : Means-tested college aid, base college aid primarily on

Explain how this relates to the federal funds rate : If a bank has deposits totaling $200,000, and their reserve requirement is 10%, what is the total on their required reserves? If that bank had total reserves equaling $50,000, what are their excess reserves? What will banks likely do with their exces..

The result of which accounting principle/guideline : A company borrowed $100,000 in December and will make its only payment for interest when the note comes due six months later. The total interest for the six months will be $3,600. On the December income statement the accountant reported Interest Expe..

The creative chief executive of a corporation : The creative chief executive of a corporation who is personally responsible for numerous inventions and innovations is not reported as an asset on the corporation's balance sheet. The accounting principle/guideline that prevents the corporation for r..

Calculate the CR and AW values for the system : A piece of research equipment is expected to require an investment of $18,000, with $6,000 committed now and next year $7000 while the remaining $6K will be pay out at the end of year 2. Annual operating costs for the system are expected to start in ..

Evaluate bpp as a company using financial ratio analysis : Evaluate BPP as a company using financial ratio analysis

User Account

All Pages