What is the term “hidden reserve”? Explain how the hidden reserves are created using a mathematical...

What is the term “hidden reserve”? Explain how the hidden reserves are created using a mathematical example.

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Hidden goodwill

ekkarill92 answered 2 years ago

Explain how the Federal Reserve influences the quantity of reserves and whether it would be possible...

Explain how the Federal Reserve influences the quantity of reserves and whether it would be possible without a fractional reserve system. Explain why traditional monetary policy is not currently available for the Fed to achieve its dual mandate (make sure to explain its dual mandate).

Why does the Federal Reserve require commercial banks to have reserves? Explain why reserves are an...

Why does the Federal Reserve require commercial banks to have reserves? Explain why reserves are an asset to commercial 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?

What is the federal reserves role in fractional reserve banking?

How can the Federal Reserve System create new excess reserves (or destroy existing excess reserves)? How...

How can the Federal Reserve System create new excess reserves (or destroy existing excess reserves)? How do the actions of the Federal Reserve alter economic conditions?

(5) Currently, the required reserve ratio for banks is 0%. Please explain what required reserves are,...

(5) Currently, the required reserve ratio for banks is 0%. Please explain what required reserves are, what a 0% required reserve ratio means and why the Federal Reserve may want to set a 0% required reserve ratio right now. If the required reserve ratio returns to 10% after the coronavirus crisis, then what would we expect to be the increase in commercial bank deposits following a one-dollar open market purchase? Show all work.

What are loan loss reserves? Using journal entries, show how the reserves are (a) set up,...

What are loan loss reserves? Using journal entries, show how the reserves are (a) set up, (b) used, (c) written-off, and (d) reversed/released.

Using a required reserve ratio of 10% and if banks keep no excess reserves, which of...

Using a required reserve ratio of 10% and if banks keep no excess reserves, which of the following scenarios produces a larger increase in the money supply, explain why. a) Someone takes $1000 from under his or her mattress and deposits it into a checking account. b) The Fed purchases $1,000 in government securities from a commercial bank.

Explain how different theories explain term structure of interest rates and how the Federal Reserve can...

Explain how different theories explain term structure of interest rates and how the Federal Reserve can conduct policies to impact interest rates.

in words and a mathematical expression, describe how to determine the magnetic field created by (i)...

in words and a mathematical expression, describe how to determine the magnetic field created by (i) straight current carrying wire, (ii) current caryying circular loop, (iii) current carrying solenoid.

Using supply and demand analysis of the market for reserves, show and explain what happens to...

Using supply and demand analysis of the market for reserves, show and explain what happens to the federal funds rate under the following situations: a. The Fed reduces reserve requirements b. A switch occurs from deposits into currency c. Banks expect a large increase in withdrawals from checking accounts d. The Fed conducts an open market sale of securities

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