Following activities will affect a bank''s required reserves

Assignment Help Financial Management
Reference no: EM13883097

Which of the following activities will affect a bank's required reserves?

a. The local Girl Scout troop collects coins and currency to buy a new camping stove. The troop deposits $ 250 in coins and opens a small time deposit.

b. You decide to move $ 200 from your MMDA to your NOW account.

c. You sell your car to the teller at your bank for $ 5,000. The teller pays with a check drawn on the bank, and you deposit the check immediately into your checking account at the bank.

d. The local university takes one- half of the fall tuition receipts and buys a three-month CD.

e. Ford Motor Company opens an assembly plant outside town and opens a checking account at the local bank for $ 100,000 with a check drawn on its bank in Detroit.

Reference no: EM13883097

Questions Cloud

Liquidity planning requires monitoring deposit outflows : Liquidity planning requires monitoring deposit outflows. In each of the following situations, which of the outflows are discretionary and which are not? If the outflow is not discretionary, is it predictable or unexpected? a. In April, a farmer draws..
How the transaction will affect the banks deposit balances : A corporate customer borrows $ 150,000 against the firm's credit line at a local bank. Indicate with a T- account how the transaction will affect the bank's deposit balances held at the Federal Reserve when the firm spends the proceeds.
The mandatory detention of aliens under the usa patriot act : The mandatory detention of aliens under the USA Patriot Act
Following activities will affect a bank''s required reserves : Which of the following activities will affect a bank's required reserves? a. The local Girl Scout troop collects coins and currency to buy a new camping stove. The troop deposits $ 250 in coins and opens a small time deposit. b. You decide to move $ ..
Following activities will affect a bank''s required reserves : Which of the following activities will affect a bank's required reserves? a. The local Girl Scout troop collects coins and currency to buy a new camping stove. The troop deposits $ 250 in coins and opens a small time deposit. b. You decide to move $ ..
Silva company sold merchandise to the bendix corporation : 1.On August 31, 2013, the Silva Company sold merchandise to the Bendix Corporation for $500,000.
Percentage of completion method of accounting : In 2013, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2015. Information related to the contract is as follows:
Monetary theory examines the role of excess reserves : Monetary theory examines the role of excess reserves (actual reserves minus required reserves) in influencing economic activity and Federal Reserve monetary policy. Viewed in the context of a single bank, excess reserves are difficult to measure. Exp..
What does the acronym tbtf refer to in banking terminology : What does the acronym TBTF refer to in banking terminology? Provide an example of a TBTF firm indicating what makes it TBTF.

Reviews

Write a Review

Financial Management Questions & Answers

  About taking a brand new product into the market

If you are asked to provide a WACC estimate for a new venture (i.e., a start-up firm), and the firm has little historical track record of earnings or cash flows. What method you will use to estimate the WACC? And how would you make the risk-adjustmen..

  Legally liable for the tax underpayment

Lebron received $50,000 of compensation from his employer and he received $400 of interest from a municipal bond. What is the amount of Lebron's gross income from these items? Lydia and John Wickham filed jointly in year 1. They divorced in year 2. I..

  Assume that the federal reserve injects

Assume that the Federal Reserve injects $80 billion into the financial system. If the money supply increases by a maximum of $500 billion, what must the reserve requirement be?

  Immediately after coupon payment-calculate the market price

A $10,000 par value bond with coupons at 8%, convertible semi-annually, is being sold three years and four months before the bond matures. The bond is redeemable at $C, and purchase will yield 6% convertible semi-annually to the buyer.

  Stock dividend-dividend is paid

An investor owns 1000 shares of stock in ABC Corp. with a market value of $1,200. ABC declares a 20% stock dividend. After the dividend is paid, John owns____________

  Standard merger guidelines of the federal reserve

The banking market in Athens, Ohio, currently has four banks with market shares of 60 percent, 20 percent, 15 percent and 5 percent. The two smallest banks have proposed merging. Under the standard merger guidelines of the Federal Reserve and the Jus..

  Analyze the financial statements of urban outfitters

This assignment provides you the opportunity to analyze various transactions using T-accounts and utilize the information to prepare a classified balance sheet. In addition, you will utilize the new concepts learned in this chapter to further analyze..

  The current price be if the market rate of interest drops

What is the current price for a General Motors 6% corporate bond with 10 years to maturity if the market rate of interest for similar bonds is 7%? What would the current price be if the market rate of interest drops to 4%?

  What is the loan term-notoriously known as slow-payer

The Art Gallery is notoriously known as a slow-payer. The firm currently needs to borrow $25,000 and only one company will loan to them. The terms of the loan call for weekly payments of $500 at a weekly interest rate of .45 percent. What is the loan..

  Concept be used to help management analyze the situation

Changes in sales cause changes in profits. Would the profit change associated with sales changes be larger or smaller if a firm increased its operating leverages? Explain your answer. A firm is about to double its assets to serve its rapidly growing ..

  Cost-effective method of mining gold is sulphuric acid

After discovering a new gold vein in the Colorado Mountains, CTT Mining Corporation must decide whether to go ahead and develop the deposit. The most cost-effective method of mining gold is sulphuric acid extraction, a process that results in environ..

  What is the nominal yield of the bond

Allais Company s bond has an $85 annual interest payment that will mature in 10 years at a value of $1,000. The bond has a current market price of $1,140. What is the nominal yield of the bond?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd