This topic contains a solution. Click here to go to the answer

Author Question: If you deposit 8,000 in a bank, calculate how much the bank must keep as required reserves and how ... (Read 52 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
If you deposit 8,000 in a bank, calculate how much the bank must keep as required reserves and how much it can loan out if the required reserve ratio was 5 percent. If it was 8 percent? 13 percent? 26 percent?

Question 2

New Keynesians argue that a decrease in government spending reduces inflation.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Sammyo

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

With a required reserve ratio of 5 percent, required reserves = 400 and loanable funds = 7,600.

With a required reserve ratio of 8 percent, required reserves = 640 and loanable funds = 7,360.

With a required reserve ratio of 13 percent, required reserves = 1,040 and loanable funds = 6,960.

With a required reserve ratio of 26 percent, required reserves = 2,080 and loanable funds = 5,920.

Answer to Question 2

True




ENagel

  • Member
  • Posts: 540
Reply 2 on: Jun 30, 2018
:D TYSM


xoxo123

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

For a complete list of videos, visit our video library