User Account

All Pages

What if any are this banks excess reserves

Assignment Help Microeconomics
Reference no: EM131271458

Assignment

Balance sheet of the Summer Bank

Assets

Liabilities

Cash          $ 15,000

Loans         $ 185,000 

Deposits $ 120,000
Capital    $ 80,000

Total          $ 200,000

Total      $ 200,000

The required reserve ratio on all deposits is 12%

a. What, if any, are this bank's excess reserves?
b. How much new amount of loan will this bank be able to create because of the excess reserves?
c. Answer part a and b if the required reserve ratio is changed to 8%.

Reference no: EM131271458

Questions Cloud

Temptation to rationalize unethical behavior : Have you ever faced a true ethical dilemma (either personal or professional)? Do you agree with the contention in class that there are very few ethical dilemmas (compared to the idea that what most folks consider to be a dilemma is more likely a temp..
Likely temptation to rationalize unethical behavior : Have you ever faced a true ethical dilemma (either personal or professional)? Do you agree with the contention in class that there are very few ethical dilemmas (compared to the idea that what most folks consider to be a dilemma is more likely a temp..
Universal standard of ethical behavior : Why can't you just accept my ethics? If there is no universal standard of ethical behavior, then how can an organization determine the appropriate level of ethical behavior to be achieved and maintained within that company?
Market stakeholders and with non-market stakeholders : In what ways should a company deal in a similar manner (and then in a distinctly different manner) with market stakeholders and with non-market stakeholders? Incorporate your response with the following question, "what are the critical external force..
What if any are this banks excess reserves : What, if any, are this bank's excess reserves? How much new amount of loan will this bank be able to create because of the excess reserves? Answer part a and b if the required reserve ratio is changed to 8%.
Describe the product or service : Create a Microsoft Word analysis of no more than 1,400 words that includes the following: Describe the product or service, including its main characteristics. Why do you believe this product is worthwhile
Considered stockholder wanna-bees : In what ways can many stakeholders be considered "stockholder wanna-bees"? What are the business and social arguments for ensuring that your company engage productively with critical stakeholders?
What is ceteris paribus : What is ceteris paribus? Why are we concerned with it? Is Economics the only field that deals with ceteris paribus?
The establishment of common rules and tips for e-mails : In order to achieve efficiency, what practical recommendations are to be followed when employing the tools? For example, the establishment of common rules and tips for e-mails.

Reviews

Write a Review

Microeconomics Questions & Answers

  Why market power is generally regarded as discrimination

If the demand elasticity for kiwi fruit is -0.2, would kiwi farmers be better off if tropical storms destroyers 1% of each farmers crops what does that tell you about the farmers incentive to form a cartel

  Differences in demand and price elasticities of demand

Select three goods or services that would have important differences in demand and price elasticities of demand for Christians as compared to non-Christians and describe why these differences would occur and what dissimilarity it would make to market..

  Regarding international trade theorem

Regarding International Trade Theorem.  According to Stolper-Samuelson Theorem, if a labor rich country put a small tariff on its imports, what would happen to real wages compared to the free trade equilibrium? Is the country better off?

  Explain the different ways that distribution adds value or

discuss the various ways that distribution adds value or utility to a product or service the impact that wholesalers

  What happens to consumer surplus in market for dvd recoreder

An improvement in technology lowers the cost of production of DVD recorders. Explain what happens to consumer surplus in the market for DVD recorders.

  Domestic investment and net capital outflow

Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national saving increase? Show the relationship between China’s national savings, domestic invest..

  Determine what fiscal policy measure has a more direct

determine what fiscal policy measure has a more direct impact to the economy an increase in government spending or an

  To maximize profit how much labor must bad breath hire and

bad breath inc sells its output at 1 per unit into competitive markets. bad breaths factory is the only employer or

  Find the mean number of base metal failures

Of all the weld failures in a certain assembly, 85% of them occur in the weld metal itself, and the remaining 15% occur in the base metal. A sample of 20 weld failures is examined. What is the probability that exactly five of them are base metal..

  1 true or false determine if each of the following

1. true or false determine if each of the following statements is true or false. explain your reasoning. all credits

  What is the present value of the lottery prize

Edsel wins a $250 million lottery prize. The money is paid out in equal instalments over 40 years beginning one year from today. What is the present value of the lottery prize to Edsel in the following cases? 1) If his discount rate is 15%? 2) If his..

  Describe normal distribution

You observe an Olympic Athlete in the long-jump. Suppose the distance of each jump is a random variable that follows a normal distribution with mean and variance2. He jumps 8 times and records the following distances.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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