If the required reserve ratio (RRR) in U.S. is 10 percent and you deposit $5,000, which is wired from your parents’ bank account in Germany to your checking account in the U.S. National Bank, then the change in the U.S. money supply eventually should be Group of answer choices a $45,000 increase. a $5,000 increase. no change. a $50,000 increase.
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- You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 20%, how much will your deposit increase the total value of checkable bank deposits? If the reserve requirement is 8%, how much will your deposit increase the total value of checkable deposits? Increasing the reserve requirement decreases the money supply. %24 %24To ensure that paper money will be accepted, the U.S. government implicitly promises the public that Group of answer choices it will not change currency denominations so that the paper currencies U.S. citizens have will continue to be used for exchanges. the U.S. monetary system will always be backed by a precious metal. it will not print money so fast that it loses its value. it will not change the rate at which the dollar is exchanged for other currencies.What is the reserve requirement
- Suppose you are the only currency holder in an economy, and you have $220 in currency. What would the money supply be in the following scenarios? [Hint: Use the money multiplier for Fractional Reserve Banking] [Blank 1] You put your $220 under your pillow[Blank 2] You put your $220 in a full reserve banking system[Blank 3] You put your $220 in a fractional reserve banking system where the reserve ratio is 10%[Blank 4] You put your $220 in a fractional reserve banking system where the reserve ratio is 17%Jane deposits $175 into her bank, and the reserve requirement is 15 percent. How much is the excess reserve in dollarsThe Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves. Recall, to calculate checkable deposits you have to add the original checkable deposits to the new deposit. To calculate required reserves for the deposits, you have to multiply the required reserve ratio (decimal from) by checkable deposits. To calculate excess reserves, you will subtract required reserves from actual reserves. Complete the table attached for the Third National Bank. You have to distinguish between a bank's assets and bank's liabilities. The figures in the table attached are for the Third National Bank. All figures are in thousands of dollars. 1. What is the total assets of this bank? Explain the basics of this bank’s balance sheet. 2. If the monetary multiplier is 4, what is the required reserve ratio? Describe how and identify by what amount the Third National…
- 18. You take $100 you had kept under your mattress and deposit it in your bank account. If the reserve ratio is 20%, calculate what happens to the total money supply?The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves. Recall, to calculate checkable deposits you have to add the original checkable deposits to the new deposit. To calculate required reserves for the deposits, you have to multiply the required reserve ratio (decimal from) by checkable deposits. To calculate excess reserves, you will subtract required reserves from actual reserves. Part 1:What level of excess reserves does the bank now have? Part 2: Complete the table below for the Third National Bank. You have to distinguish between a bank's assets and bank's liabilities. The figures in the table below are for the Third National Bank. All figures are in thousands of dollars.(The table normally goes here) Part 3: What is the total assets of this bank? Explain the basics of this bank’s balance sheet. Part 4: If the…The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves. Recall, to calculate checkable deposits you have to add the original checkable deposits to the new deposit. To calculate required reserves for the deposits, you have to multiply the required reserve ratio (decimal from) by checkable deposits. To calculate excess reserves, you will subtract required reserves from actual reserves. 2.1. What level of excess reserves does the bank now have?
- If the reserve ratio was 20% and someone deposited an additional $8,000, what would be the maximum increase in total deposits?Suppose you inherited $257,000 cash from a bequest, and you decide to deposit it at your bank. Assuming the $257,000 is the only money supply in the economy, your task is to determine how much money your bank can create using the $257,000 you deposited. Show all your calculations The required reserve ratio is 3.5%. a. How much of the initial money supply can the bank give out as loans? If the recipient of the loan keeps the money at the same bank, what will be the total money supply in the economy? b. How much of the new money supply can the bank give out as loans? Will it increase or decrease the total money in the economy? By how much? c. Suppose the required reserve ratio increases by 4.5%, repeat steps in parts (a) and (b). What is the total money supply in the economy? Thank you so much!!Assuming a reserve requirement of 20%, if the central bank of a country injects an additional $10,000 in reserves into the banking system, how much new money can the banking system create?