What is the significance of excess reserves

Reference no: EM13197081

Why does the Federal Reserve require commercial banks to have reserves? Explain why reserves are an asset to commercial banks but a liability to the Federal Reserve Banks. What are excess reserves? How do you calculate the amount of excess reserves held by a bank? What is the significance of excess reserves? How are they used to manage the economy?

Reference no: EM13197081

Questions Cloud

Why applying a vertical translation : Explain why applying a vertical translation and then a horizontal translation produces the same result as applying a horizonatal translation and then a vertical translation.

What should be the dimensions of each enclosure : a farmer has 1200 feet of fence and wishes to build two identical rectangular enclosures. What should be the dimensions of each enclosure if the total area is to be a maximum?

Define ions contain the same number of electrons : The following ions contain the same number of electrons. Rank them in order of decreasing ionic radii.

When partition is withdrawn then how much the entropy change : one mole of B at 2 bar are separated by a partition and surrounded by a heat reservoir. when the partition is withdrawn, how much does the entropy change?

What is the significance of excess reserves : Why does the Federal Reserve require commercial banks to have reserves Explain why reserves are an asset to commercial banks but a liability to the Federal Reserve Banks. What are excess reserves How do you calculate the amount of excess reserves ..

State the enthalpy of neutralization of hcl with naoh : The enthalpy of neutralization of HCl with NaOH is -55.8 kJ/mol when very dilute solutions are mixed, but is -58.2 kJ/mol when 2M solutions are mixed, as in this experiment. The reaction is

By how much would value of the financial securities decline : Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $2 to $4 to $8 to $16 to $32 to $64 over a six-year time pe..

Compute the enthalpy change reaction per mole of x : Calculate the enthalpy change, H, for this reaction per mole of X. Ignore any heat transfer to or from the calorimeter.

Recast johnsons income statement : Write a short essay on how management accounting can help the managers of an organization to run their business efficiently and prepare a report for Johnson explaining the errorshe made in his income statement

User Account

All Pages