What are the required reserves of people

Assignment Help Business Economics
Reference no: EM132445046

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: EM132445046

Questions Cloud

What things are brought into equilibrium at that price : Conceptually, why is this particular number the short-run equilibrium price, that is, what things are brought into equilibrium at that price?
Profit-maximizing outputs under competitive and monopoly : Problem: A firm's inverse demand function is p=400-4Q , C=500+200Q a) Find the profit-maximizing outputs under competitive and monopoly market;
Describe the selected laws and regulations : Select two Laws and Regulation and compare and contrast them, along with the ramification to business. Please write a brief paragraph of what you learned this.
What is live theaters total revenue function : What is Live Theaters' total revenue function? What is its total cost function? Its total profits function?
What are the required reserves of people : Suppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example.
Compute the maximum profit for the monopolist in terms of f : Compute the maximum profit for the monopolist in terms of F. For what values of F will the monopolists profit be negative?
Does either company have a first-mover advantage : Two companies, Company A and Company B, are deciding whether each should implement a new pricing strategy, which may or may not result in a price war.
Equilibrium wage and quantity of pilots : Consider the market for pilots. What is likely to happen to the equilibrium wage and quantity of pilots if the government enforces
Write about the phrase time is money : Write about the phrase "time is money" by naming some specific investments of time and the subsequent return on investment.

Reviews

Write a Review

Business Economics Questions & Answers

  About a competitive price-searcher market

Which of the following statements are true about a competitive price-searcher market? Check all that apply.

  Substitute capital for unskilled labor in production process

Boss Fuzzhead is an engineer by training and says “I know that we can substitute capital for unskilled labor in the production process that our company uses and projections are that capital costs are declining, so those unskilled folks better just be..

  What is the theory of consumer choice

What is the theory of consumer choice and how it consumers facing trade-offs make decisions and how they respond to changes in their environment?

  Using direct or indirect price discrimination

Would an organization benefit from using direct or indirect price discrimination. Why or why not? Provide an example.

  Taking into consideration the global ramifications

Monetary policy in the US, especially the desire to increase interest rates at some time soon, will have international repercussions. One of these will be to strengthen an already strong dollar. Please discuss the consequences of such an interest rat..

  Order to obtain the maximum daily revenue

The Physics Club sells E = mc2 T-shirts at the local flea market. Unfortunately, the club's previous administration has been losing money for years, so you decide to do an analysis of the sales. How much should the Physics Club charge for the T-shirt..

  The price elasticity of demand for labor will depend

The price elasticity of demand for labor will depend upon all but the:

  Most likely to represent fixed cost of firm

Which of the following is most likely to represent a fixed cost of a firm?

  What is the difference between the effective annual rate

What is the difference between the effective annual rate and the annual percentage rate, and when should you use which?

  Explains contractionary monetary policy in the long run

Which of the following explains contractionary monetary policy in the long run?

  What happens to total tax revenue collected

Owing to the positive IS shock, what happens to total tax revenue collected?

  Some groups have higher incomes than others

In the United States, some groups have higher incomes than others. Which of these would be considered discrimination?

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