Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Q1. Assume that the T-account for the Nan Bank Inc. is as shown below:

Assets                            Liabilities

Reserves $100,000        Deposits $500,000
Loans $400,000

a) If the Bank of Canada needs banks to hold 5 % of deposits as reserves, how much in surplus reserves does Nan Bank Inc. now hold?

b) Suppose that all the other banks hold just the required amount of reserves. If Nan Bank Inc. decides to decrease its reserves to only the required amount, by how much would the economy's money supply raise?

Q2. The economy of Kyleland includes 2000 $1 bills.

a) If people contain all money as currency, then determine the quantity of money?

b) If people contain all money as demand deposits and the banks maintain 100 % reserves, then find out the quantity of money?

c) If people contain equal amounts of currency and demand deposits and the banks maintain 100% reserves, then find out the quantity of money?

d) If people contain all the money as demand deposits and the banks maintain a reserve ratio of 10%, the find out the quantity of money?

e) If people contain equal amounts of currency and demand deposits and the banks maintain a reserve ratio of 10%, then find out the quantity of money?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910181

Have any Question? 


Related Questions in Macroeconomics

A describe five 5 ecosystem goods and services of the

a.) Describe five (5) ecosystem goods and services of the Neponset River Watershed. b.) Assign dollar ($) values to these 5 ecosystem goods and services of the Neponset River Watershed. Please be clear about how you asse ...

The annual rate of growth of real gdp in a developing

The annual rate of growth of real GDP in a developing nation is 0.2 percent. Initially, the country's population was stable from year to year. Recently, however, a significant increase in the nation's birthrate has raise ...

International political economy examtake home essay

International Political Economy Exam Take Home Essay Guide Seay I. Basic Terminology: Be able to incorporate as many of of the following basic political economic terms as possible into each of the two essays of choice fr ...

Innbspa at least two page long report showing your thinking

In a at least two page long report showing your thinking (not quotes)  discuss one major idea from the Macroeconomics  as reviewed in the textbook, class lectures or discussion  that answers this question :   how does th ...

If you are investing 500000 today in a company that is

If you are investing $500,000 today in a company that is promising to pay $1,000,000 at the end of 20 years, what is your expected rate of return for this investment? 50.2% 4.35% 12% 10% 3.53% 20%

A number ofnbspcurrency crisesnbsphave affected certain

A number of  currency crises  have affected certain countries, which have also resulted in contagion in the sense that the crises affected neighboring countries. In a critical essay,  select a country (or countries) affe ...

Using the following Using the following link: 

Using the following link:  http://www.econedlink.org/national-budget-simulator.php , work through the National Budget Simulation (Links to an external site.) in an effort to achieve a budget deficit of $1100B dollars. Sc ...

The economy is operating below full employment y0 gt y the

The economy is operating below full employment (Y0 > y* )The government wants bring the economy back to full employment but in the process wants to change the composition of demand toward investment and away from consump ...

You work for a technology firm that offers a very generous

You work for a technology firm that offers a very generous employee stock purchase program as a benefit; you can but as much stock as you want and your employer will pay half the price. This means that the stock price wo ...

In the united stats a three-pound can of coffee costs 5 if

In the United Stats, a three-pound can of coffee costs $5. If the exchange rate is 0.6 euros per dollar and three-pound can of coffee in Belgium costs t 4 euros. What is the real exchange rate? (please show work)

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen