subject
Business, 01.12.2020 02:00 Squara

Hello thank you so much for your help so kinda a long question here (multiple parts). 2. The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves.
Recall, to calculate checkable deposits you have to add the original checkable deposits to the new deposit. To calculate required reserves for the deposits, you have to multiply the required reserve ratio (decimal from) by checkable deposits. To calculate excess reserves, you will subtract required reserves from actual reserves.
2.1. What level of excess reserves does the bank now have?

2.2. Complete the table below for the Third National Bank. You have to distinguish between a bank's assets and bank's liabilities.
The figures in the table below are for the Third National Bank. All figures are in thousands of dollars. (Table/chart/graph) normally goes here)

2.3. What is the total assets of this bank? Explain the basics of this bank’s balance sheet.

2.4.If the required reserve ratio for the Third National Bank is 10 percent, what is the monetary multiplier?
(helpful stuff)Recall, to calculate you have to use the formula: Monetary Multiplier = 1÷Required Reserve Ratio. The money multiplier is a key measure in banking that helps to predict the money supply that will be available to drive economic growth. As you can see from the formula, if the reserve requirement is 20%, the money multiplier will be 1 divided by 0.2, which is 5. We can then use the money multiplier multiplied by the excess reserves to determine the maximum checkable-deposit creation that will be provided by the new money entering the system.

2.5. If the monetary multiplier is 4, what is the required reserve ratio? Describe how and identify by what amount the Third National Bank can create money in the economy.
(helpful stuff)Recall that, generally, bank creates money in a typical economy by making loans. The Fed sets the reserve requirement (the required reserve ratio) that directly affects the amount of money creation.


Hello thank you so much for your help so kinda a long question here (multiple parts).

2. The Thir

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 11:30
Marta communications, inc. has provided incomplete financial statements for the month ended march 31. the controller has asked you to calculate the missing amounts in the incomplete financial statements. use the information included in the excel simulation and the excel functions described below to complete the task
Answers: 1
question
Business, 22.06.2019 19:20
Win goods inc. is a large multinational conglomerate. as a single business unit, the company's stock price is estimated to be $200. however, by adding the actual market stock prices of each of its individual business units, the stock price of the company as one unit would be $300. what is win goods experiencing in this scenario? a. diversification discount b. learning-curveeffects c. experience-curveeffects d. economies of scale
Answers: 1
question
Business, 22.06.2019 19:30
Adisadvantage of corporations is that shareholders have to pay on profits.
Answers: 1
question
Business, 22.06.2019 19:30
He moto hotel opened for business on may 1, 2017. here is its trial balance before adjustment on may 31. moto hotel trial balance may 31, 2017 debit credit cash $ 2,283 supplies 2,600 prepaid insurance 1,800 land 14,783 buildings 72,400 equipment 16,800 accounts payable $ 4,483 unearned rent revenue 3,300 mortgage payable 38,400 common stock 59,783 rent revenue 9,000 salaries and wages expense 3,000 utilities expense 800 advertising expense 500 $114,966 $114,966 other data: 1. insurance expires at the rate of $360 per month. 2. a count of supplies shows $1,050 of unused supplies on may 31. 3. (a) annual depreciation is $2,760 on the building. (b) annual depreciation is $2,160 on equipment. 4. the mortgage interest rate is 5%. (the mortgage was taken out on may 1.) 5. unearned rent of $2,580 has been earned. 6. salaries of $810 are accrued and unpaid at may 31
Answers: 2
You know the right answer?
Hello thank you so much for your help so kinda a long question here (multiple parts). 2. The Third...
Questions
question
History, 12.10.2020 19:01
question
English, 12.10.2020 19:01
question
Mathematics, 12.10.2020 19:01
question
Mathematics, 12.10.2020 19:01
question
Mathematics, 12.10.2020 19:01
question
Health, 12.10.2020 19:01
Questions on the website: 13722361