Depositors Money: 150,000 Banks Money: 0 Reserve Req. Ratio: 10% What is the: Ac
ID: 2441578 • Letter: D
Question
Depositors Money:
150,000 Banks Money: 0 Reserve Req. Ratio: 10% What is the: Actual Reserve__________ Required Reserve__________ Excess Reserve__________
2. Depositors Money: 200,000 Banks Money: 10,000 Reserve Req. Ratio: 15% What is the: Actual Reserve__________ Required Reserve__________ Excess Reserve__________
3. Depositors Money: 15,000 Banks Money: 20,000 Reserve Req. Ratio: 20% What is the: Actual Reserve__________ Required Reserve__________ Excess Reserve__________
4. Depositors Money: 100,000 Banks Money: 5,000 Reserve Req. Ratio: 100% What is the: Actual Reserve__________ Required Reserve__________ Excess Reserve__________
How much money could be created in the economy if all excess reserves from above were used for loans and security purchases?
1. _________ 2. _________ 3. _________ 4. _________
Explanation / Answer
Q.1.
Required reserve
= 10% * 150000
= $15,000
Actual Reserve = $15,000 as banks money is 0
so it keeps onlyrequired reserve.
.excess reserve =
= actual reserve - required reserve = 0
Q.2.
Required reserve
= 15% of 200,000
= $30,000
Actual reserve
= required reserve+ Banks money
= $10,000 + $30000
= $40,000
Excess reserve = $10,000.
Note - As per chegg policy we can solve main 1 question but here i solved extra one for you
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