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Assume to Third National Bank has reserves of $20,000 also checkable deposits of $200,000. The reserve ratio is 10 percent (%). The bank now sells $15,000 in securities to the Federal Reserve Bank in its district, receiving a $15,000 rise in reserves in return.

Illustrate what level of excess reserves does the bank now have? $

Q2. The Demand function of dog breeders for electric dog polishers is qb = max {200 - p}; also the Demand function of pet owners for electric dog polishers is qo = max {90 - 4p}.If the price is below $22.50, then Illustrate what is the market Demand function.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9169966

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