How to create deposit dollars

Assignment Help Microeconomics
Reference no: EM13174299

Show a T-account for a bank when you make a deposit of $1000 into your checking account. Assume the reserve ratio is 20%.
If the lending process continues as far as it can possibly go, how many deposit dollars will be created from this initial $1000 deposit?

Reference no: EM13174299

Questions Cloud

Find out moles of cuo for lab decomposition of malachite : moles of CuO produced: or formula how to find out moles of CuO for lab Decomposition of Malachite.
What is a cyanide based compound used in synthesis : what is a cyanide based compound used in synthesis of methadone?
Identify the factors that would affect the preliminary asses : Identify the factors that would affect the preliminary assessment of inherent risk and control risk at queen island dairy and explain how these factors would influence your choice between the predominantly substantive approach
What weigh tof caco3 is required : what weigh tof CaCO3 is required to completely react 135 ml of a 0.665M solution. Must show set up.
How to create deposit dollars : If the lending process continues as far as it can possibly go, how many deposit dollars will be created from this initial $1000 deposit?
Calculate the projects cash flows each year : Calculate the project's contribution to net income each year and calculate the project's cash flows each year
How many grams of lithopone are produced in the reaction : How many grams of lithopone are produced in the reaction of 315ml of 0.275M ZnSO4 and 285 ml of 0.315M BaS?
Difference between a price ceiling and a price floor? : If a price ceiling is set below the market equilibrium, what will happen to the quality and future availability of the good.
What is the laboratory air pressure in atm : the air in the laboratory was measured with a barometer to be 7.20 x 10 squared mm Hg. what is the laboratory air pressure in atm.

Reviews

Write a Review

Microeconomics Questions & Answers

  Significance of the labor theory of value

Discuss how is it possible to change society, for Marx, through using relationship between economy on the one hand and the political environment on the other.

  Determining marginal revenue and profits

A firm with market power produces widgets at marginal cost of $10 per unit and zero fixed costs. It faces demand function given by P = 50 - Q. Find out the marginal revenue for the firm?

  Find the level of labour supply

Let the utility function be U = log(x) - l, where l is labour and x is consumption. Find the level of labour supply if the wage rate w=10.

  Marginal benefit and supply curve solutions

Suppose you manage an agency that provides Meals on Wheels to infirm elderly residents in the county. The agency operates three kitchens. Each kitchen is producing one-third of the total meals every day.

  Question about minimum wage

Assume government forced a minimum wage above what otherwise would be equilibrium wage rate for this segment of the labor market.

  Explain the effect of interest rates on money supply

In the summer of 1997, Congress and president agreed on budget package to balance the federal budget. The contract," signed into law by President Clinton in August as the Taxpayer Relief Act of 1997,

  How will the programs affect the debt

How will the programs affect the debt? How will they affect private investment? Is crowding out a concern in the short versus long run as a result of the proposed policies?

  Draw demand curve for bridge crossings

Assume you're in charge of the toll bridge that essentially cost free. The demand for bridge crossings Q is given by P = 60 - 2Q. Draw a demand curve for bridge crossings

  Describe workers productivity

In what particular ways (if any) does a college education increase a worker's productivity? Take some special care with this problem.

  Difference-equilibrium price and equilibrium quantity

Write down the difference between Equilibrium price and Equilibrium quantity. What role does elasticity place?

  Movement along demand curve and shift in demand

Describe the difference between movement along the demand curve and a shift in demand. Provide an example to help the class understand the difference between the two.

  Compute the mean and standard deviation of damage

Compute the mean and standard deviation of the damage in any year and determine the expected value of X, E(X), and expected value of Y, E(Y).

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