What level of excess reserves does the bank now have

Assignment Help Econometrics
Reference no: EM131243780

Suppose again that the Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. The bank now sells $5000 in securities to the Federal Reserve Bank in its district, receiving a $5000 increase in reserves in return. What level of excess reserves does the bank now have? Why does your answer differ (yes, it does!) from the answer to question 9?

Reference no: EM131243780

Questions Cloud

By how much has the supply of money changed : How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against the bank? Show the new balance sheet in column 2.
Describe an entrepreneurial storyboard for a current product : Develop and describe an Entrepreneurial Storyboard for a current product on the market. Template will be provided with examples in class
Choose between a private corporation : Choose between a private corporation, government entity, or University and describe three elements of risk that you feel need to be managed on a day-to-day basis. Be sure to define why risk management needs to be in place and what countermeasures ..
Diploma mills on legitimate educational institutions : 1) What is the impact of diploma mills on legitimate educational institutions? How does one check the credentials of learning institutions to verify legitimacy? What should one look for when selecting an institution of higher learning?
What level of excess reserves does the bank now have : The bank now sells $5000 in securities to the Federal Reserve Bank in its district, receiving a $5000 increase in reserves in return. What level of excess reserves does the bank now have? Why does your answer differ (yes, it does!) from the answer..
Explain why you selected the particular type of media : Providing a description of the stroke prevention media piece that you created. Include the details of your educational media, Explain why you selected the particular type of media and how and why it is suitable for your patient population.
Surgical procedures during hospitalization : Surgical Procedures during Hospitalization: List 2 teaching needs you have identified for this client. List Nursing Diagnosis: 2 physiological and 1 teaching and three Nursing Interventions
Combination of content or the steps will be acceptable : This post must be at least 400 words 1) Using your book and the Internet, please explain the Linux Boot Process A combination of content or the steps will be acceptable Be sure to cite your sources, the post must contain at least three sources (one c..
Describe the clinical presentation of chronic kidney disease : Explain how you might diagnose a patient with chronic kidney disease including the role that patient history, physical exams, and diagnostics play in diagnosis. Explain implications of potential treatment options for this disease including prescrib..

Reviews

Write a Review

Econometrics Questions & Answers

  What are the values of price elasticity

Dx = Px-2 I1.5 PY1.5. From the information above, what are the values of price elasticity Income elasticity How much will D change if Px is cut by 5% and income rises by 10%

  What is the magnitude of surplus labor

According to the Lewis model, what is the magnitude of surplus labor? Do the producers in this sector make their decisions on the basis of profit maximization

  How much money must the engineer set aside in the project

A young engineer wishes to become a millionarie by the time he is 60 years old. He believes that by careful investment he can obtain a 15% rate of return. He plans to add a uniform sum of money to his investment program each year, beginning on his..

  Will the burden of the proposed tax fall primarily on wealth

"We should impose a 20 percent luxury tax on expensive automobiles (those with a sales price of $50,000 or more) in order to collect more tax revenue from the wealthy." Will the burden of the proposed tax fall primarily on the wealthy Why or why n..

  What is the size of the labor force

Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor fo..

  Calculate the number of workers to be laid off

For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000 Should the firm shut down immediately ..

  What if the deflation continued for a number of years

A mortgage company lends the Miller family $100,000 to buy a house worth $105,000. During the next year, there is deflation and all prices, including house prices, unexpectedly fall by 10%. 1. After the first year, who is better off

  1 john davis a recent ie graduate from tennessee

1. john davis a recent ie graduate from tennessee technological university bought an suv for 30000 with a down payment

  What would be the effect on us drug consumers

Based on this example, discuss when price discrimination is likely to be socially useful and when it does not have much to recommend it.

  Explain will you be a net borrower or net saver

Your utility function for present and future consumption is given by U(P,F)=P*F. You earn an income of $50,000 in the present, and will subsequently earn an income of $50,000 in the future. Will you be a net borrower or net saver.

  What generalization can you make from this exercise

What generalization can you make from this exercise?

  What would determine who produces the good

Consider a situation similar to that in Figure 7-3, in which two countries that can produce a good are subject to forward-falling supply curves. In this case, however, suppose that the two countries have the same costs, so that their supply curves..

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