If the required reserve ratio is 0.10, the maximum increase in checking account deposits that will result from an increase in bank reserves of $10,000 is $200000.
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- Find the required reserve if the excess reserve is $600 and the actual reserve is $100If I own Hawkins Savings and Loan, and a customers makes a $8,000 deposit, what is the total amount I am able to lend if the reserve requirement is 15%?Suppose on your 21st birthday, your eccentric grandmother invites you to her house, takes you into her library, removes a black velvet painting of Elvis Presley from the wall, opens a hidden safe where she removes 50 crisp $100 bills, and hands them to you as a present, claiming you are her favorite grandchild. After thanking your grandmother profusely (and helping her rehang the picture of Elvis), you proceed to your bank and deposit half of your gift in your checking account and half in your savings account. How will these transactions affect M1 and M2? How will these transactions change M1 and M2 in the short run? What about the long run?”
- Calculate the initial deposit if total money creation is $25,000 and the legal reserve ratio is 18%John deposits $3,000 into his checking account. If the reserve ratio is 15%, what are the required and excess reserves? Required reserves: $ Excess reserves: $ keep a portion of it and lend out the rest. keep every penny as vault cash since it is such a small amount. lend out every penny since almost all transactions are digital.John deposits $1,600 into his checking account. If the reserve ratio is 5%, what are the required and excess reserves? Required reserves: $ Excess reserves: $
- If a bank has total reserves of $175,000 and $1,000,000 in deposits, how much money can it lend if the required reserve ratio is 5%If the reserve ratio was 20% and someone deposited an additional $8,000, what would be the maximum increase in total deposits?Research and identify two cryptocurrencies, how they have evolved in recent years and how might you expect them to evolve further in the future. Discuss whether these means of “payment” fully fulfil all three functions of “money.” (Your answer should be 600 words ±10%)
- Suppose you deposit $1,900 cash into your checking account. By how much will checking deposits in the banking system increase as a result when the required reserve ratio is 0.50? The change in checking deposits is equal to: $ (enter your result rounded to the nearest dollar).If the required reserve ratio is 50 percent, then the simple deposit multiplier is: (enter a whole number)Suppose Southeast Mutual Bank, Walls Fergo Bank, and PJMorton Bank all have zero excess reserves. The required reserve ratio is presently set at 5%. Sean, a Southeast Mutual Bank customer, deposits $200,000 into his checking account at the local branch.Change in Required Reserves(Dollars)
