subject
Business, 08.11.2019 02:31 1044537

1. (30 pts.) suppose the total amount of reserves in the economy is $5 billion, and the public does not directly hold any cash. also, suppose all banks hold excess reserves equal to 4% of deposits and the required reserve ratio is 5%. ( round numerical answers to two decimal places.) a. (2 pts.) calculate the money multiplier. b. (5 pts.) what is the total money supply (or money stock)? c. (8 pts.) bank of america (boa) has $300 million in deposits, $10 million in bank capital (net worth), $203 million in loans, and $80 million in other assets. draw a balance sheet for boa, showing all categories, including the amount of reserves the bank must be holding. now suppose that all banks in the economy decide to reduce excess reserves to just 1%. d. (15 pts.) calculate the new equilibrium money supply, assuming the banks make new loans with all the funds they were formerly holding as reserves but no longer wish to hold.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 01:20
During 2004, pitt corp. incurred costs to develop and produce a routine, low‐risk computer software product as follows: completion of detailed program design $13,000 costs incurred for coding and testing to establish technological feasibility 10,000 other coding costs after establishment of technological feasibility 24,000 other testing costs after establishment of technological feasibility 20,000 costs of producing product masters for training materials 15,000 duplication of computer software and training materials from product masters (1,000 units) 25,000 packaging product (500 units) 9,000 in pitt's december 31, 2004 balance sheet, what amount should be reported in inventory?
Answers: 2
question
Business, 22.06.2019 10:00
The solution set for -18 < 5x-3 iso-3х3< xо-3хo3 > x​
Answers: 3
question
Business, 22.06.2019 12:20
Over the past decade, brands that were once available only to the wealthy have created more affordable product extensions, giving a far broader range of consumers a taste of the good life. jaguar, for instance, launched its x-type sedan, which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury. by marketing to people who desire a luxurious lifestyle, jaguar is using:
Answers: 3
question
Business, 22.06.2019 16:40
Determine the amount of money in a savings account at the end of 1 year, given an initial deposit of $9,500 and an annual interest rate of 12 percent when interest is compounded: use appendix a for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
Answers: 2
You know the right answer?
1. (30 pts.) suppose the total amount of reserves in the economy is $5 billion, and the public does...
Questions
Questions on the website: 13321479