Write the required reserves of peoples national bank does

Assignment Help Microeconomics
Reference no: EM13451966

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: EM13451966

Questions Cloud

Why the interest-earning checkable deposits included in m1 : what determines whether a financial asset is included in the m1 money supply? why are interest-earning checkable
How do the requirements for coverage for domestic partners : research two companies in the fortune 500 that offer partner benefits. compare and contrast the companies as you answer
Five years ago weed go inc earned 125 per share its : 1.five years ago weed go inc. earned 1.25 per share. its earnings this year were 2.00. what was the annual growth rate
Calculate the depreciation expense under the following : valley corporation purchased a new piece of equipment on june 1 2011. the cost of this machine was 325000. the company
Write the required reserves of peoples national bank does : suppose that the reserve requirement is 10 percent and the balance sheet of the peoples national bank looks like the
What role has class race and gender played in their lives : write a 1500-word paper using apa standards that focuses on the following interview two different individuals regarding
Use the income statement equation approach to calculate the : kincaid company sells flags with team logos. kincaid has fixed costs of 583200 per year plus variable costs of 4.80 per
Nancy lau currently holds 10000 shares in the icicle : nancy lau currently holds 10000 shares in the icicle company that supplies air conditioning systems. icicle has issued
Returns for small stocks consider if the great depression : returns for small stocks consider if the great depression had happened from 1989 to 2000 and the returns from 1989 to

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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