Question
In: Economics
19.Assume that Paris First National Bank is a thriving bank with deposits of $20 million. If...
19.Assume that Paris First National Bank is a thriving bank
with deposits of $20 million. If the required reserve ratio is 20
percent and the bank is fully loaned out, the bank will keep what
amount of required reserves?
a.$2 million.
b.$4 million.
c.$10 million.
d.$16 million.
e.$20 million
20.The required reserve ratio for a bank is set by:
a.Congress.
b.the bank itself.
c.the Treasury Department.
d.the Federal Reserve.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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Assume that a bank has $12 million in reserves and checkable
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uestion 44 Suppose that National Bank of Guerneville has ?$35
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You are the employed by the First National Bank. This bank has $5 million in capital....
You are the employed by the First National Bank. This bank has
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Calculate the risk weighted level of assets and risk weighted
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You are the employed by the First National Bank. This bank has $5 million in capital....
You are the employed by the First National Bank. This bank has
$5 million in capital. They have $100 in checkable deposits. Of
that they keep only the 10% required reserves and loan the rest
out. In $45 million in business loans and $50 million in
residential mortgages. How well capitalized is First National Bank?
Calculate the risk weighted level of assets and risk weighted
leverage ratio. Why are leverage (capital) ratios important for
financial regulators and institutions?
First National bank with Assets(Reserves: 20, Loans: 80), Liabilities(Deposits: 90, Share Capital: 10) Require reserve ratio...
First National bank with Assets(Reserves: 20, Loans: 80),
Liabilities(Deposits: 90, Share Capital: 10)
Require reserve ratio by the Fed is 10%
If the bank experiences a deposit outflow of 15mn
a. what is the new level of deposits?
b. what is the new level of reserves?
c. what is the resulting reserve ratio?
d. if ratio is less than 10%, what would bank do for bringing
more reserves?
Andy deposits $1000 into his checking account at First National Bank. a). What happened to M1...
Andy deposits $1000 into his checking account at First National
Bank.
a). What happened to M1 (narrow money supply)?
b). How does First National T-accounts change after Andy’s
deposit?
c.) Banks in this economy like to keep 10% of deposits in
reserves. How does First National change its T-account?
d.) The loans that First National Bank makes are spent and
sellers deposit their proceeds in their checking accounts. Suppose
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a.
Show the balance sheet of the Federal Reserve and National Bank
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Show the balance sheet of the Federal Reserve and National Bank
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transaction deposits.
Show the balance sheet of the Federal Reserve and National Bank
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