What must bank of aggieville''s owner''s equity be

Assignment Help Econometrics
Reference no: EM131042362

BONUS HOMEWORK QUESTIONS!!!!!!!!!!! Must be turned in before class Wednesday!

Let's look at a simple balance sheet for the Bank of Aggieville. In Aggieville the Reserve Requirement is 5%.

Bank of Aggieville

Assets Liabilities

Cash $500 Deposits $4000

Deposit in the Fed $500

Loans $2000

Bonds (Securities) $900 Other Liabilities $400

Other $1100 Net Worth/Owner's Equity ????

ALL ANSWERS MUST NOT INCLUDE COMMAS OR DOLLAR SIGNS OR THEY WILL BE COUNTED WRONG. IF THE ANSWER IS FIVE THOUSAND DOLLARS PUT 5000 NOT $5000 OR $5,000 OR 5,000!!! Obviously, you must find the required reserves first to solve for excess reserves.

1. What is the current level of Excess Reserves in the Bank of Aggieville?

What is the maximum amount of new loans that can be created by the whole banking system as a result of this? (Include the excess reserves as part of the loans created and use your money multiplier)

What must Bank of Aggieville's Owner's Equity be?

Reference no: EM131042362

Questions Cloud

Customer satisfaction is reduced waiting times : As the branch manager of a bank, naturally, you want to make your customers happy. An important factor in enhancing your customer satisfaction is reduced waiting times. You are not happy with the current estimates of the waiting times in your branch...
Why might tax on domestic consumption of resources critical : Why might a tax on domestic consumption of resources critical for national security be a more efficient approach than barriers to imports?
How can combination of these five types be used effectively : Compare the benefits and disadvantages of each of the types of performance appraisals: graphic rating scales, forced-distribution methods, behaviorally anchored rating scales, learning goals/management by objective methods, and peer review Is it p..
Confidence interval for the population mean : 1. Student researchers took a random sample of 100 students and calculated the ratio of backpack weight to body weight for each student. They found a sample mean ratio of 0.07713, and a sample standard deviation of 0.03664.
What must bank of aggieville''s owner''s equity be : What is the maximum amount of new loans that can be created by the whole banking system as a result of this? (Include the excess reserves as part of the loans created and use your money multiplier)
What is your core product or service and competition : What is your core product or service? How much money will you need to get started? Will you need to get a loan? How long will it take before your products or services are available? Who will be your competition? How will you price your product(s) or ..
Why the industrial revolution precipitated social change : Discuss how and why the Industrial Revolution precipitated both political and social change in Europe?
Explain how positive price effects can happen : Draw the appropriate diagram, and use it to explain the logical steps to explain how positive price effects can happen
Kitchen remodling requirements plan and permits : The owner of kitchen remodling R US has requested you to develop a project scope statement so he feels you have a great understanding what is required on the project.  care needs to be taken so no damage occurs to the new flooring. The home owner has..

Reviews

Write a Review

Econometrics Questions & Answers

  What was the capital gain value

In 1984, Walt Disney brought in Michael Eisner, a Paramount executive as CEO. The firm's board of directors agreed to pay Eisner a salary of $750,000 plus a $750,000 bonus for signing on, plus an annual bonus equal to 2 percent of the dollar amoun..

  What will happen to the price of the bond

Suppose that interest rates are 6 percent in the economy and a safe bond promises to pay $3 per year in interest forever. Interest rates suddenly fall to 3 percent. What will happen to the price of the bond that pays $3 per year

  What is per worker production function in terms of capital

Suppose initially (period 0) the economy is endowed with $5 (billion) of capital stock and 10 (thousand) workers (let's ignore the units). We know that saving rate s is 0.15, population growth rate n is 0.01 and depreciation rate d is 0.09. Suppos..

  Clearly use expenditure approach to compute gdp

Imports 170 Undistributed corporate profits 7 Personal taxes 136 Compute each of the following approach and show your numerical calculation clearly Use Expenditure Approach to compute GDP

  What is the payback period for the software

An engineering department is considering purchase of an advanced computational fluid dynamics software system to enhance productivity. the initial cost of the software is $55,000 but is expected to result in efficiency savings of $25,000 the first..

  Identify the errors that you found in your review

Use technology and information resources to research issues in microcomputer applications for accountants.

  What are the shut-down and break-even points for the firm

The short-run total cost curve of a firm in a hypothetical market is given by: STC=10Q2 + 4Q + 100 with short-run marginal cost given by SMC=20Q+ 4. There are 100 firms in the market. Market demand is Qd = 500-Pmkt

  What is the equilibrium price and the equilibrium quantity

Given the table below, graph the demand and supply curves for flashlights. Make certain to label the equilibrium price and equilibrium quantity. What is the equilibrium price and the equilibrium quantity

  Explain stakeholder benefits and possible risks

Explain stakeholder benefits and possible risks associated with both models.

  What is the monopolists total cost function

Suppose a monopolist can purchase Labor at a price w = 36 and can purchase Capital at a price r = 25. The monopolist's production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 180 - 3Q.

  How many times more productive was the average worker

In 2010, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average earnings in 2010 were about $22 per hour, and certain highly skilled professionals, such as doctors and lawyers.

  How much in revenues do businesses receive in product market

how much are households paid for providing entrepreneurial ability? $ billion for entrepreneurial ability b. If households spend $80 billion on goods and $70 billion on services, how much in revenues do businesses receive in the product market.

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