Illustrate what is the fed funds rate in the banking, Ask an Expert

Economics

Q. (a.) 3rd National Bank is fully loaned up with reserves of $30,000 also demand deposits equal to $100,000. The reserve ratio is 10%. Households deposit $10,000 in currency into the bank. How much excess reserves does the bank now have also illustrate what is the maximum amount of new funds which can be created in the banking system as a result of this deposit? Demonstrate all work.

(b.) Illustrate what is the fed funds rate in the banking system? Explicates howthe Fed manipulates this rate in order to achieve macroeconomic objectives.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9219376

Have any Question?Write your Review or question?

Related Questions in Business Economics

Draw supply and demand curve to illustrate the following

Draw supply and demand curve to illustrate the following sequences of events. Show changes in one graph. Assume upward sloping for supply curves and downward sloping for demand curves 1. In year 1, the rental apartment m ...

Assume that combined with borrowing and irrational

Assume that combined with borrowing and irrational exuberance have driven up the value of existing financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time pe ...

The food marketing institute shows that 16 of households

The Food Marketing Institute shows that 16% of households spend more than $100 per week on groceries. Assume the population proportion is p = 0.16 and a sample of 600 households will be selected from the population. Us ...

A manufacturer of cereal has a machine that when working

A manufacturer of cereal has a machine that, when working properly, puts 20 ounces of cereal on average into a box with a standard deviation of 1 ounce. Every morning workers weigh 25 filled boxes. If the average weight ...

How might profit maximization lead to higher demand for

How might profit maximization lead to higher demand for female workers and result in female workers earning higher wages than male workers in the same firm?

What should ngos non-governmental organization do in

What should NGOs (non-governmental organization) do in regions of conflict or war? The benefits of having NGO's personnel in such regions outweigh the risks?

What is a survey and pros and cons of using this method to

What is a Survey and pros and cons of using this method to collect data are? Have you done a survey? How successful were your results?

Suppose there is no inflation and an insurance company

Suppose there is no inflation and an insurance company offers a contract that would pay $500,000 with certainty 50 years from now. What is the most that this contract would be worth today if: 1. The rate of interest is 7 ...

Do you think that the taxicab industry in large cities

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?

The offices of president vice president secretary and

The offices of? president, vice? president, secretary, and treasurer for an environmental club will be filled from a pool of 16 candidates. Nine of the candidates are members of the debate team. ?(a) What is the probabil ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert