What is the required reserve ratio

Assignment Help Macroeconomics
Reference no: EM13335429

A bank has $120 million in total assets, which are composed of reserves, loans, and securities. its only liabilities are $120 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total reserves equal $6 million. What is the required reserve ratio?

Reference no: EM13335429

Questions Cloud

Explain the problem is to imagine the reaction proceeds : One way to approach the problem is to imagine the reaction proceeds to equilibrium by first going 100% to completion and then backing up a little
What capital budget could firm support without issuing stock : A corporation expects to have earnings available to common shareholders (net profits minus preferred dividends) of $1,000,000 in the coming year. The firm plans to pay 40 percent of earningss available in cash dividends.
Explain the relationship between the price elasticity : (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more elastic over a shorter or a longer period of time?
Determine the work done by the man on the piano : A 380 kg piano slides 3.9 m down a 27 incline and is kept from accelerating by a man who is pushing back on it parallel to the incline. Determine the work done by the man on the piano
What is the required reserve ratio : A bank has $120 million in total assets, which are composed of reserves, loans, and securities. its only liabilities are $120 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total reserves equal $6 millio..
Define what is the value of the equilibrium constant : For the cell reaction Cu(s) + 2Fe3+ ----> 2Fe2+ + Cu2+ Ecell=0.33V What is the value of the equilibrium constant at 25C for the cell reaction
Calculate the linear speed of the chain : The front and rear sprockets on a bicycle have radii of 8.67 and 5.55cm, respectively. Calculate the linear speed (in cm/s) of the chain as it moves between the sprockets
Can you derive an optimality condition for conditional facto : Suppose a firm uses 2 inputs to produce one output. Can you derive an optimality condition for conditional factor demand for the first input if the second factor is fixed in the short run? How does it look like?
Business today depend on databases to provide reliable info : Business today depend on databases to provide reliable information about items in inventory, items that need restocking, and inventory costs

Reviews

Write a Review

Macroeconomics Questions & Answers

  Calculate the output-optimum scale and price

The government imposes a fixed fee per year on each firm operating in a competitive market.

  Bond that pays an annual coupon of 10 percent and trades

Calculate the duration of a two-year, $1,000 bond that pays an annual coupon of 10 percent and trades at a yield of 14 percent. What is the expected change in the price of the bond if interest rates decline by 0.50 percent

  Explain how would you evaluate this forecast for your firm

Explain how would you evaluate this forecast for your firm.

  Calculate the equilibrium price and quantity

Where do demand and MR intersect the quantity axis? Calculate the equilibrium price and quantity.

  Find out trade stats express also find national trade data

Find out Trade Stats Express also find out National Trade Data. Determine the trade balance between the U.S. and China for the period of 2005-2011.

  Illustrate what is the value of a two-month call

Illustrate what is the value of a two-month call option to buy Sony at $26. Illustrate what is the value of a two-month put option with an exercise price of $26.

  Illustrate what happens if the government is trying

Illustrate what happens if the government is trying to stimulate the economy with their spending, but this leads to a greater output than projected.

  What is the meaing of tit-for-tat in game theory

How did the 1971 law that banned cigarette advertising on television solve the prisoners' dilemma for cigarett producera (a)What is the meaing of tit-for-tat in game theory (b) What conditions are usually required for tit-for-tate strategy to be the ..

  Keynesian economists favor active policymaking

Keynes is famous for saying: "In the long run we are all dead". How long is the long run? How long are you willing to wait for inflation to ease or for unemployment to improve?

  Explain would you see any differences in the technologies

Suppose that prisons historically have required prisoners to perform, without pay, various cleaning and food preparation jobs within the prison. Now, suppose that prisoners are offered paid work in factory jobs

  Suppose that charles home improvement when disposal cost

Now suppose that Charles Home improvement, when the disposal cost of old water heaters is included, has exactly the same average and marginal cost curves for installing replacement water heaters as does ABC water heater.

  What are the two effects of every price change

What are the two effects of every price change Given two goods, "x" and "y", if the price of "x" increases (all else equal), what do each of the effects say will happen to the consumption of "x"? After the change, what can we say about the quantity..

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