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

Economists have long argued that due to moral hazard

Economists have long argued that, due to moral hazard problems, that "bailing out" firms such as banks (the S&L crisis), brokerage firms (Bear Stearns, Drexal Burnham...) and nations (Perhaps Greece in the future and the ...

The stock market is like a casino and buying stock is just

The stock market is like a casino and buying stock is just like placing a bet. Stocks are risky but with good research and prudent planning one can earn significant returns. Pick a statement and defend it.

Take the following information as given for a small

Take the following information as given for a small, imaginary economy: - When income is $10,000, consumption spending is $6,500 - When income is $11,000, consumption spending is $7,300 Then, the multiplier for this econ ...

What are the causes of market failure or when and why do

What are the causes of market failure, or when and why do markets fail to provide a socially optimal allocation? Explain & give examples of four types of market failure.

Consider vosburg v putney an 1891 wisconsin case putney

Consider Vosburg v. Putney, an 1891 Wisconsin case. Putney, age 11, kicked Vosburg, age 14, in the leg during school. The kick was not very hard - the jury found that "defendant, in touching the plaintiff with his foot, ...

Explain how a 4-period moving average time series can be

Explain how a 4-period moving average time series can be constructed manually. You can use a simple example of your choice.

Why is the marginal revenue for the monopolist downward

Why is the marginal revenue for the monopolist downward sloping?

What is the payoff for a put option with a strike price of

What is the payoff for a put option with a strike price of $50 if the stock price at expiration is $65? Please provide detail of how you got your answer

Question -according to the prediction of the economic

Question - According to the prediction of the economic research department of the Central Bank at the end of 2018, the macroeconomic situation next year (2019) is given in the following table, if neither the Central Bank ...

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 ...

  • 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