Table 7 Balance Sheet of the Springfield National Bank Assets Liabilities Vault
ID: 2440766 • Letter: T
Question
Table 7 Balance Sheet of the Springfield National Bank Assets Liabilities Vault Cash $1,725 Deposits $5,450 Deposit n Fed$425 $3,300 $5,450 Loans Total Liabilities $5,450 to Table 7. If the reserve requirement is 10 percent, the maximum potential increase in eler money supply in the bankdng system would be a $54,500 h $21,500 ? $16,050 d $11,800 e $5,450 g1 efer tu money supply in the banking system would be 31.1 2 Relfer to Table 7. If Springfield National Bank's customers write checks for $550 and the 32.1 i om 10% to 5%. Calculate the change in the bank's reserve requirement is decreased fr excess reserves a-$250 $300 ? +245 +$272.5 $300 ifthe following is the closest example of structural unemployment? 33.[ á sid Instructor who is out of work during the summer Jas resigns from her low paying job. After looking for a new job for two weeks she is s less highly frustrate cameras became common ployer promises to rehire her when business picks up. est olege graduate seeking his/her first job in the IT industry. d and gives up looking for a better-paying job. n a firm manufacturing films for roll flm cameras lost jobs once digital De to the current slump, Melanie has been laid offrom her programming job. HerExplanation / Answer
31.
A.$54500
Working note:
Deposit = $5450
Reserved ratio = 10%
Maximum potential increase in money supply = 5450/10% = $54500
32.
A-$250
Working note:
Existing excess reserve = 1725+425 - 5450*10% = $1605
New level of deposit = 5450-550 = $4900
At 5% reserve requirement, the required reserve = 4900*5% = $245
New excess reserve = 1725+425 - 550 – 245 = $1355
Change in excess reserve = new excess reserve – old excess reserve = 1355-1605 = -$250
33.
C
There is a change of technology behind the unemployment. Hence, it is a case of structural unemployment.
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