Loans $8,000 Debt $800 Short-term securities $800 Capital (owners' equity) $200 Refer to Table 2. The required reserve ratio is 6 percent and First Nationa to the Federal Reserve. This action will increase First National's reserves by $150. Its excess reserves are $24 decrease First National's reserves by S150. Its excess reserves are $0. increase First National's reserves by $150. Its excess reserves increases increase First National's reserves by S150. Its total reserves increase b: both c and d above

Loans $8,000 Debt $800 Short-term securities $800 Capital (owners' equity) $200 Refer to Table 2. The required reserve ratio is 6 percent and First Nationa to the Federal Reserve. This action will increase First National's reserves by $150. Its excess reserves are $24 decrease First National's reserves by S150. Its excess reserves are $0. increase First National's reserves by $150. Its excess reserves increases increase First National's reserves by S150. Its total reserves increase b: both c and d above

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Monetary System

Section: Chapter Questions

Problem 5PA

See similar textbooks

Similar questions

Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 32Deposits 205Loans 150 Securities 53Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)
Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 44Deposits 255Loans 155 Securities 51Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 6%(Give answers to 2 decimal places as needed)
Table 1 First Charter Bank Assets Liabilities Reserves $800 $400 Deposits Net Worth Loans Total $1.200 Total Refer to Table 1. The required reserve ratio is 25%. If the First Charter Bank is meeting its reserve requirement and has no excess reserves, its loans equal Lütfen birini seçin: O A. $600 O B. $900 OC $1,000 O D. $1,800 O E $1400
Northern Bank: Balance Sheet Assets Liabilities Deposits Capital $7,000 $1,000 $8,000 Reserves $420 $7,580 $8.000 Loans Refer to the table above. Assume that Northern Bank's target reserve ratio is 8 percent. In order to achieve its target reserve ratio, Northern Bank must and O A. increase its reserves by $140; decrease its deposits by $140 O B. increase its reserves by $280; increase its loans by $380 OC. increase its reserves by $280; decrease its deposits by $280 O D. increase its reserves by $140; decrease its loans by $140 O E. not change its reserves; not change its deposits
The bank you own has the following balance sheet Assets OA. You can go to the discount window. OB. You can call in or sell off loans. OC. You can borrow reserves in the federal funds market OD. Any of the above are appropriate actions to take Liabilities $75 million Reserves Loans Deposits Bank capital $525 million If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10%, what actions can you take to keep your bank from failing? $500 million $100 million
Examine the balance sheet of commercial banks in the tollowing tabie. Assete Blion Total Liabilities and Net Horth $ Billion Total Real anseta Equipment and premises 156.2 Other real estate Liabilities $ 10,281.3 1,206.0 0.9 Deposita Debt and other borroved funde Federal funds and repurchase agreenente 56.0 8.9 0.4 1.0 Total real asseta 225.1 1.2 1,967.0 10.7 Other 1,523.0 15,057.3 8.3 82.0 Total liabilities Finaneial asseta Cash Investment securities Loans and leanes 898.3 0,032.1 6,759.3 1,223.2 6.1 4.9 43.7 34.8 Other tinaneial asseta Total finaneial asseta 16,912.9 92.1 Other assete Intangible anseta 427.4 2.3. 4.4 6.7 Other 802.7 30.1 $ 18,368.1 $3,310.8 $ 18,368.1 Total other asseta Net worth 18.0 Total 100.0 100.0 Balance sheet of FDIC-insured commercial banks and savings institutions Note: Column sums may differ from total because of rounding error. Source: Federal Deposit Insurance Corporation, www.fdic.gov, March 2016. a. What is the ratio of real assets to total assets?…
Assume the Continental National Bank's balance statement is as follows:Assets:reserves $40,000loans $25,000securities $110,000Liabilities + net worthcheckable deposits $130,000stock shares $45,000Assuming a legal reserve ratio of 20 percent, how much in excess reserves would this bank have after a check for $10,000 was drawn and cleared against it?$3,000.$24,000.$6,000.$16,000.
1. For this part think about Demand and supply in the market of Reserves. a. Who are on the demand side of the market? b. Who are on the supply side of the market? C. Assume equilibrium federal funds rate is strictly between discount rate and interest on reserves. Draw demand, supply and equilibrium for the market o. eserves below. (Label axis, curves and equilibrium point) d. raw NEW supply and demand graph for reserves on which equilibrium federal funds rate equals discount rate but is above interest on reserves. (again label axis, curves and equilibrium point) e. What happens on the First graph when discount rate drops? Show shift and explain how equilibrium federal funds rate and equilibrium quantity of reserves changes. (Write explanations below but make shifts on the graph for question (c)) f. - What happens on the Second graph when discount rate drops? Show shift and explain how equilibrium federal funds rate and equilibrium quantity or reserves changes. (Write explanations…
Recognize thehistorical context ofthe development ofthe central bankingsystem
Suppose Universal Bank holds $100 million in assets,which are composed of the following:Required reserves: $10 millionExcess reserves: $ 5 millionMortgage loans: $20 millionCorporate bonds: $15 millionStocks: $25 millionCommodities: $25 millionDo you think it is a good idea for Universal Bank tohold stocks, corporate bonds, and commodities asassets? Why or why not?
18. Refer to Table 13.2. The required reserve ratio is 20%. If the First Charter Bank ismeeting its reserve requirement and has no excess reserves, its loans equal:a) $710b) $460c) $550d) $760
The following net transaction accounts and cash reserves at the Federal Reserve have been documented by a bank for computation of its reserve requirements (in millions) under lagged reserve accounting. November Monday Tuesday Wednesday Thursday 5th Friday 6th 2nd 3rd 4th $220 $9 Tuesday 10th $250 $12 Tuesday 17th $220 $7 Friday 13th $280 $6 Fridzy 20th Net Transaction Accounts $230 $200 $11 Wednesday 11th $250 $9 Wednesday 1sth $190 Reserves at Fed S10 Monday 9th $170 S8 Thursday 12th $220 Net Transaction Accounts Reserves at Fed $5 Thursday Mondzy 16 $210 19th Net Transaction Accounts $310 $7 Tuesday 24th $340 $6 Wednesday $180 $160 $6 Friday 27th Reserves at Fed $5 Monday 23th Thursday 26th 25th Net Transaction Accounts $270 $8 Tuesday Ist $350 $12 Tuesday $150 $4 Wednesday 2nd $250 $1 Wednesday $250 $9 $250 S5 $280 $7 Reserves at Fed December Monday 30th $340 Thursday 3rd $240 Friday 4th $220 $9 Friday 1lth Net Transaction Accounts Reserves at Fed $1 $10 Monday Thursday 10th 7th Sth…