Bank A has deposits of $8,000 and reserves of $1,200. If the required reserve ra

Q: Bank A has deposits of $8,000 and reserves of $1,200. If the required reserve ra

3. reserves requirement=10%*8000=800 excess reserves =actual minus required=1200-800=400 will be answer. we do first question only as per Chegg

ID: 1225657 • Letter: B

Question

Bank A has deposits of $8,000 and reserves of $1,200. If the required reserve ratio is 10 percent, the bank has excess reserves of

Question 3 options:

$800.

$600.

$400.

$200.

If a person uses money to buy a pair of shoes, money is functioning as

Question 4 options:

a medium of exchange.

a store of value.

a unit of account ormeasurement.

none of the above

A single commercial bank must meet a 20% reserve requirement. If this bank has no excess reserves to begin with and $20,000 cash is deposited into a checking account in the bank, then the bank can safely increase its loans by a maximum of:

Question 5 options:

$4,000.

$20,000.

$2,000.

$16,000.

National Bank holds $58,000,000 in checkable deposits and $0 in excess reserves under a required reserve ratio of 10 percent. Suppose customers of the bank bring in $2,000,000 in currency to add to their checkable deposits. How much more money can this bank now create at maximum?

Question 6 options:

$1,300,000

$2,300,000

$1,800,000

$700,000

Bank A holds $1 million in required reserves and the required reserve ratio is 10 percent. It follows that Bank A holds checkable deposit liabilities that total

Question 2 options:

$1 million.

$10 million.

$20 million.

$100,000 million.