What is the maximum amount of loans that the bank can make

Assignment Help Econometrics
Reference no: EM13222674

assume that the Bank of Ecoville has the following balance sheet of Fedhas 10% reserve requir.This is the Sheet for Ecoville International Bank. Assets cash is 33,000. Assets loans is 66,000. Liabilities demand deposits is 99,000. Assume that Fed lowers the reserve requirement to 8%. What is the maximum amount of loans that this bank can make?Assume that the bank makes these loans. What will the new balance sheet look like? By how much has the money supply increased and decreased?

Reference no: EM13222674

Questions Cloud

Which of the two vendors will you select : The other tells you that she will supply you no defectives because her factory practices statistical process control. Which of the two vendors will you select? Why? (500 Words)
Find the range of values of c1 : Find the range of values of c1 fir which the current basis remains optimal.
Determine the amount of reduction in cross-sectional : K=35,000lb/in^2 and n=0.40 for a metal used in a forming operation in which the workpart is reduced in cross-sectional area by stretching. If the average flow stress on the part is 20,000lb/in^2, determine the amount of reduction in cross-sectiona..
Describe which factors change and which remain constant : Explain why the balloon would float when heated. Make sure to discuss which factors change and which remain constant, and why this matters. Be complete.
What is the maximum amount of loans that the bank can make : assume that the Bank of Ecoville has the following balance sheet of Fedhas 10% reserve requir.This is the Sheet for Ecoville International Bank. Assets cash is 33,000. Assets loans is 66,000. Liabilities demand deposits is 99,000.
Explain the rules for the compounds : How are you suppose to remember all the rules for these compounds? And how will you know when to apply them in a certain problem?
Determine the profit-maximizing output under collusion : The demand for an oligopoly is P=75-2Q. The firms have cost functions TC1 = 3q1+q TC2 = 18q2+q2² a. Determine the profit-maximizing output under collusion. b. Calculate the equilibrium price under collusion. c. Determine if the firms should collude .
Explain the graduated cylinder while preparing the sample : Some sample solution was spilled into the outside of the graduated cylinder while preparing the sample, and before determining the volume.
Advantages and disadvantages of process : You have recently been hired to improve the quality of services at a healthcare organization - What are the advantages and disadvantages of process and outcome measures of quality?

Reviews

Write a Review

Econometrics Questions & Answers

  Question about walt disney world theme park

Walt Disney World Theme Parks offer tourists a wide variety of ticket options. The one thing these ticket options have in common is that they entail a fixed entrance fees and permit consumers to take as several rides as they wish at no additional cha..

  By how much will the money supply change

The Federal Reserve has just purchased $100 million in Treasury bills from commercial banks. b. If the public holds a fixed amount of currency (so that all loans create an equal amount of deposits in the banking system), the minimum reserve ratio ..

  Determine what would the monthly payment be

Suppose you want to buy a car. Sale price of the car is $18,427. You can afford to make a down payment of $3,427. The net amount to be financed is $15,000. If the dealer offers 6 year at 6.25% APR (compound monthly), what would the monthly payment..

  Determine the rate of return to the accuracy

How much would you need to invest at 6% interest compounded quarterly on January 1, 2014 in order to accumulate $10,000 by December 31, 2016 2-Given cash flows for an investment of $5,800 at time "0", determine the rate of return to the accuracy of ..

  Describe which maximizes its revenues

Assume an automobile manufacturer can sell its pickup truck with or without a towing package. Customer Group A is willing to pay a maximum of $30,000 for the truck and $1,100 for the towing package. Customer Group B is willing to pay $29,000 for t..

  What is the probability that woman will use a credit card

The store found that 75% of all sales made to credit card users were for purchases of the new line of sportswear, while 30% of all sportswear sales were for the purchase of the outdated fashions. Records indicate that credit cads are used in 80% o..

  Find out how much each one charges to park car

The attendant quotes you $100. Suppose you rate the opportunity cost of getting back in your car and sampling another price at $5. Assuming you're risk-neutral, what should you do A. Sample another price. B. Stay at this motel.

  What is maxs most profitable course of action

Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end. Max wants to be ready with..

  Find the subgame perfect nash equilibrium

Find the Subgame Perfect Nash Equilibrium where rm 1 chooses its quantity in the rst stage, then in the second stage rm 2 makes its quantity choice. Find the equilibrium quantities, price, and prots. Which rm produces more in equilibrium Find the ..

  Find what is the firms current output level

At its current short-run level of production, a firm's average variable costs equal $30, and its average fixed costs equal $70. Its total costs at its current production level equal $34,000. a. What is the firm's current output level

  What is the total income if only the firms lead expeditions

Montana is home to a number of firms offering wilderness hunting experiences to wealthy city dwellers. However, the profits of such firms depend on how crowded the "wilderness" is and how many deer are available.

  What is the equivalent present value of payments

What is the equivalent present value of the following series of payments: $7000 the first year, $6500 the second year, $6000 the third year, $5500 the fourth year, and $5000 the fifth year The interest rate is 10%, compounded annually.

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