required % he 15 . reserve ratio is if banks are required to hold $60 billion in
ID: 1111471 • Letter: R
Question
required % he 15 . reserve ratio is if banks are required to hold $60 billion in reserves to support $400 billion in deposits 4. If Bank A is holding $15 million in reserves, then Bank A has checkable deposits equal to $ reserve ratio is 20%. If the required reserve ratio is 10%, the value of the simple deposit multiplier is If the required reserve is 10%, then S2 million in bank reserves can support of if excess reserves are currently equal to zero and the required 5. Inh 6. a maximum in deposits. 7. Required reserves are $. required reserve ratio is 20%, and total checkable deposits are $4,000,000. Based on the information in number 7, excess reserves are $ The required reserve ratio is reserves to support $1,000 billion in deposits. If the required reserve ratio is 10% and Bank C is holding $400,000 in reserves, then Bank C's checkable deposits are $ currently equal to zero. when total reserves are S800,000, the 8. . if banks are required to hold $125 billion in 10. if Bank C has excess reserves 205 Chapter 10 AssignmentsExplanation / Answer
Ans:
6) Deposits = $2 million / 10%
= $20 million
7) Required reserves = $4000,000 * 20%
= $800,000
8) Excess reserves = Total reserves - Required reserves
= $800,000 - $800,000
= 0
9) Required reserve ratio = $125 billion / $1000 billion
= 0.125 or 12.5%
10) checkable deposits = $400,000 / 10%
= $40,00,000
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