Find the required reserves of peoples national bank does

Assignment Help Microeconomics
Reference no: EM13453443

Suppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example.

a. What are the required reserves of People's National Bank? Does the bank have any excess reserves?

b. What is the maximum loan that the bank could extend?

c. Indicate how the bank's balance sheet would be altered if it extended this loan (show the new t-account).

d. Suppose that the required reserves were 20 percent. If this were the case, would the bank be in a position to extend any additional loans? Explain.


Assets

 



Liabilities

 



Vault Cash $20,000

 



Checking deposits $200,000

 



Deposits at Fed $30,000

 



Net Worth $15,000

 



Securities $45,000

 

 


Loans $120,000

Reference no: EM13453443

Questions Cloud

Paraphrase the transition to organic agriculture section on : paraphrase the transition to organic agriculture section on p. 29 of your textbook. how does the precautionary
Find the financial statements for the publicly traded : find the financial statements for a publicly traded company that provides segmented financial information. prepare an
You are designing an experiment to study the effect of the : you are designing an experiment to study the effect of temperature on the growth of bacteria in petri dishes. your heat
Analyze how funding in the form of aid investment and loans : use the internet to research one 1 developing nation of your choice. your research should include an examination of the
Find the required reserves of peoples national bank does : suppose that the reserve requirement is 10 percent and the balance sheet of the peoples national bank looks like the
What are the four methods commonly used to identify the : 1. what are the four methods commonly used to identify the fixed and variable elements of a mixed cost?2. identify the
What would happen to earth if the entire worlds people were : what would happen to earth if the entire worlds people were to achieve the same consumption levels as
Write down an essay explaining the negative and positive : write an essay describing the negative and positive aspects of genetically modified organisms. give examples of gmo
Compare and contrast the strengths and weaknesses of the : compare and contrast the strengths and weaknesses of the engineering and analytical approaches to hazard avoidance. be

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain two 2 organizational forms of business eg

examine two 2 organizational forms of business e.g. functional product etc.. predict the possible implications of the

  Cost of equity-wacc

What is the component cost of the equity raised by selling new common stock? What is the maximum amount of new capital that can be raised at the lowest component cost of equity?

  Write a paper detailing the analysis of market structures

pricing strategy varies significantly across different market structures. the pricing guidelines in a monopoly market

  Explain price elasticity of demand for automobiles measures

The demand curve for a good is very unlikely to be perfectly vertical because A) scarcity and limited income restrict the ability of consumers to afford goods as they become very expensive. B) as the price of a good rises to high enough levels, the ..

  What will price and output be if there is no dominant firm

What will price and output be if there is no dominant firm Now assume that there is a dominant firm, whose marginal cost is constant at $6. Derive the residual demand curve that it faces and calculate its profit-maximizing output and price.

  Explain advantages andor disadvantages of distributing

suppose that the governmental authorities wished to decrease use of a pesticide that is leaching into groundwater

  Estimate the effect of the system on gdp of foreign nation

select a country that has universal health care system provided by that country and provide some background information

  Describe how unemployment insurance subsidizes certain

there are some subsidy features to unemployment insurance primarily for jobs that are unattractive or that offer

  How might things change if the border were open

Studies of the effects of immigration into the United States from Mexico tend to find that the big winners are the immigrants themselves. How might things change if the border were open, with no restrictions on immigration.

  Statement of the problemthe purpose of this report is to

statement of the problemthe purpose of this report is to show the potential of lowering energy consumption when

  Describe how water is allocated in western us and how this

1 define the sustainability criterion as used by tietenberg. what does this criterion say about fairness to future

  Find out how price elasticity of demand affects decision

prepare a 700-1050-word paper summarizing the content. in the paper be sure to address the followingwhat causes the

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