Business, 08.11.2019 02:31 1044537

1. (30 pts.) suppose the total amount of reserves in the economy is $5 billion, and the public does not directly hold any cash. also, suppose all banks hold excess reserves equal to 4% of deposits and the required reserve ratio is 5%. ( round numerical answers to two decimal places.) a. (2 pts.) calculate the money multiplier. b. (5 pts.) what is the total money supply (or money stock)? c. (8 pts.) bank of america (boa) has $300 million in deposits, $10 million in bank capital (net worth), $203 million in loans, and $80 million in other assets. draw a balance sheet for boa, showing all categories, including the amount of reserves the bank must be holding. now suppose that all banks in the economy decide to reduce excess reserves to just 1%. d. (15 pts.) calculate the new equilibrium money supply, assuming the banks make new loans with all the funds they were formerly holding as reserves but no longer wish to hold.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 22:30

Acompany determined that the budgeted cost of producing a product is $30 per unit. on june 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in june, and the company desires to have 120,000 units on hand on june 30. the budgeted cost of goods sold for june would be

Answers: 1

Answer

Business, 22.06.2019 12:00

Identify at least 3 body language messages that project a positive attitude

Answers: 2

Answer

Business, 22.06.2019 13:40

Horace society is planning its annual western fair raceway gala. the gala committee has assembled the following expected costs for the event: dinner (per person) $10 gaming token and program (per person) $2 prize payouts $4,300 tickets and advertising $800 private box suite rental $1,700 lottery licenses $200 the committee members would like to charge $40 per person for the evening’s activities.required: 1. what is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. assume that last year only 200 persons attended the dinner-dance. if the same number attend this year, what price per ticket must be charged in order to break even? 3. refer to the original data ($40 ticket price per person). prepare a cvp graph for the dinner- dance from zero tickets up to 600 tickets sold.

Answers: 2

Answer

Business, 22.06.2019 15:30

Calculate the required rate of return for climax inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. do not round your intermediate calculations.

Answers: 3

Answer

You know the right answer?

1. (30 pts.) suppose the total amount of reserves in the economy is $5 billion, and the public does...

Questions