How many excess reserves does the bank hold

Assignment Help Econometrics

Reference no: EM13232383

Suppose a bank's balance sheet looks as follows:
Assets Liabilities
Reserves $450 Deposits $5,000

And banks are required to hold equal to 10 percent of deposits.
a. How many excess reserves does the bank hold?
b. How much more can this bank lend?

Reference no: EM13232383

Questions Cloud

Axial age philosophical and religious movements : What does Jaspers consider the important characteristics of “Axial Age” philosophical and religious movements, and what is his explanation of how such similar movements arose within a relatively short period in quite separated parts of the world?

Why might a large railroad be better organized as m-form : U.S. railroads in the 19th century were M- form organizations based on geography. Why might a large railroad be better organized as M-form than U-form

Explain ecognizing that the molecular formula may be twice : Write structural formulas for six, recognizing that the molecular formula may be twice the empirical formula in some of them.

Write a program to display a simplified bill : Suppose automobile repair customers are billed at the rate of $35 per hour for labor. Also, suppose costs for parts and supplies are subject to a 5% sales tax.

How many excess reserves does the bank hold : Suppose a bank's balance sheet looks as follows: Assets Liabilities Reserves $450 Deposits $5,000 And banks are required to hold equal to 10 percent of deposits. a. How many excess reserves does the bank hold

Describe the events of gastrulation : Explain the process of early development in animals, Describe how the blastula of frogs, chicks and sea urchin will appear very different from each other, and explain why, describe the events of gastrulation

Explain salt has no reaction to concentrated h2so4 : a water soluble salt forms a precipitant during Group 3 analysis. An acidic solution of this precipitant and NaBiO3 yields a pinkish color. This same salt has no reaction to concentrated H2SO4 or AgNO3, what is the chemical formula for this salt?

Smart objectives for company mission statements : Product quality is our number one priority and every customer will be a satisfied customer - Conduct a SWOT analysis for a company that you would like to work for after graduation. Assess the company against the strengths, weaknesses

Write the code to read the name of a baseball team : Write the code to read the name of a baseball team, the number of games won, and the number of games lost, and display the name of the team and the percentage of games won.

User Account

All Pages