What is the maximum amount of loans that the bank can make

Assignment Help Econometrics

Reference no: EM13222674

assume that the Bank of Ecoville has the following balance sheet of Fedhas 10% reserve requir.This is the Sheet for Ecoville International Bank. Assets cash is 33,000. Assets loans is 66,000. Liabilities demand deposits is 99,000. Assume that Fed lowers the reserve requirement to 8%. What is the maximum amount of loans that this bank can make?Assume that the bank makes these loans. What will the new balance sheet look like? By how much has the money supply increased and decreased?

Reference no: EM13222674

Questions Cloud

Which of the two vendors will you select : The other tells you that she will supply you no defectives because her factory practices statistical process control. Which of the two vendors will you select? Why? (500 Words)

Find the range of values of c1 : Find the range of values of c1 fir which the current basis remains optimal.

Determine the amount of reduction in cross-sectional : K=35,000lb/in^2 and n=0.40 for a metal used in a forming operation in which the workpart is reduced in cross-sectional area by stretching. If the average flow stress on the part is 20,000lb/in^2, determine the amount of reduction in cross-sectiona..

Describe which factors change and which remain constant : Explain why the balloon would float when heated. Make sure to discuss which factors change and which remain constant, and why this matters. Be complete.

What is the maximum amount of loans that the bank can make : assume that the Bank of Ecoville has the following balance sheet of Fedhas 10% reserve requir.This is the Sheet for Ecoville International Bank. Assets cash is 33,000. Assets loans is 66,000. Liabilities demand deposits is 99,000.

Explain the rules for the compounds : How are you suppose to remember all the rules for these compounds? And how will you know when to apply them in a certain problem?

Determine the profit-maximizing output under collusion : The demand for an oligopoly is P=75-2Q. The firms have cost functions TC1 = 3q1+q TC2 = 18q2+q2² a. Determine the profit-maximizing output under collusion. b. Calculate the equilibrium price under collusion. c. Determine if the firms should collude .

Explain the graduated cylinder while preparing the sample : Some sample solution was spilled into the outside of the graduated cylinder while preparing the sample, and before determining the volume.

Advantages and disadvantages of process : You have recently been hired to improve the quality of services at a healthcare organization - What are the advantages and disadvantages of process and outcome measures of quality?

User Account

All Pages