Foregone interest due to reserve requirements declines

Assignment Help Business Economics
Reference no: EM132288667

For every ?$1000 in? deposits, the amount that banks lost in forgone interest? (opportunity cost) because of reserve requirements if banks charged 14?% on loans and the require reserve ratio was 21% is $_______. (Round your response to the nearest two decimal? place.)

If the required reserve ratio? decreases, then the foregone interest due to reserve requirements declines, remains the same, or rises?

Reference no: EM132288667

Questions Cloud

Taxes paid for a given income level : Susan is getting ready to do her taxes. She is single and lives in Denver. Susan earned $50,000 in taxable income in 2015. She reviews the following table
Internal rate of return : Use the internal rate of return to determine which site should be selected. The MARR is 25% per year.
Compare the way in which we elect presidents in our system : The U.S. Constitution stipulates that Electors will vote for the office of President and Vice President, what we commonly refer to as the Electoral College.
Issue of high supply of labor in education : Which macroeconomic policy (monetary policy or fiscal policy) might resolve the issue of high supply of labor in education?
Foregone interest due to reserve requirements declines : If the required reserve ratio? decreases, then the foregone interest due to reserve requirements declines, remains the same, or rises?
Describe the corporate issues they have faced in the past : Find a company that has a global information system. Describe it as international, transnational, multinational. Find a reliable sources.
What is this going to tell the board of directors : What is this going to tell the Board of Directors and contribute to the decision-making process?
Discuss the unemployment rate by gender : Provide an overview of its trend and use facts to highlight the major changes in its trend and current status. Why does it represent a challenge for the economy
Potential negative consequences of using them : Compare the benefits of growing GM seeds for crops with the potential negative consequences of using them?

Reviews

Write a Review

Business Economics Questions & Answers

  Three retirement plans under development

There are three retirement plans under development. Each plan has a 6% compounded monthly and you cannot take a withdrawal until year 20. One plan requires a payment of X/year for the next 10 years. The other requires a payment of $200 each year from..

  Fans can never catch up with the vicious cycle of sports

Consider the following statement, paraphrasing one lament by fans. “Fans can never catch up with the vicious cycle of sports event pricing. As fan income rises, they can finally afford the high price of sports events

  Advantage of economies of scale

Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.

  The minimum attractive rate of return

An investment of $20,000 is to be made on a computer system that will last for 6 years and have a zero salvage value at that time. Operating, maintenance and software costs are projected to be $15,000 the first three years and $20,000 the last 3 year..

  Eliminate the pollution from the firm

Assume there is a firm which produces a type of pollution which it would be willing to eliminate for $500. There are 3 households that live far away from each other but are the only ones affected by the pollution. These 3 households would be wi..

  Reserves to meet its reserve requirement

Assuming a bank only keeps enough of its reserves to meet its reserve requirement, how much money is created when a bank receives a deposit from an individual of $80,000 and there is a 10% reserve requirement.

  Long-run perfectly competitive equilibrium

Consider a perfectly competitive equilibrium in which each firm’s long run total cost curve is TC(Q)=Q^3−2Q^2+10Q. For each of the following, explain why it cannot a long-run perfectly competitive equilibrium

  Hypothetical prices-quantities demanded of software product

The table below shows the hypothetical prices and quantities demanded of a software product. Assume that the fixed cost of setting up the production of software is $200 and the marginal cost is $5.

  Cash flow stream

What is the present worth of the following cash flow stream? Assume 6% interest (2 pts)

  Q1 why does a reduction in taxes have a smaller multiplier

q1. why does a reduction in taxes have a smaller multiplier effect than an increase in government spending of an equal

  The supply-side effects of tax cut arise because taxes act

The supply-side effects of a tax cut arise because taxes act as (a stimulus/an incentive/a disincentive) to work, save, and provide entrepreneurial services. The supply-side from from an increase in government expenditure arise because government exp..

  Calculate the probability that a randomly caught fish

Calculate the probability that a randomly caught fish will be longer than 26.5 inches.

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