This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A bank's assets consist of 500,000 in total reserves, 1,600,000 in loans, and a building worth ... (Read 35 times)

CORALGRILL2014

  • Hero Member
  • *****
  • Posts: 525
on: Jun 30, 2018
A bank's assets consist of 500,000 in total reserves, 1,600,000 in loans, and a building worth 1,200,000 . Its liabilities and capital consist of 2,000,000 in demand deposits and 1,300,000 in capital. If the required reserve ratio is 30 percent, what is the level of the bank's excess reserves? How much money could the excess reserves be used to create in the banking system as a result?
 a. zero; zero
 b. 50,000; 50,000
 c. 50,000; 500,000
 d. The bank has insufficient reserves to meet its reserve requirements.

Question 2

The actual rate of inflation is equal to the expected rate of inflation along the:
 a. downward-sloping Phillips curve.
  b. upward-sloping aggregate supply curve.
  c. horizontal aggregate supply curve.
  d. downward-sloping aggregate demand curve.
  e. vertical Phillips curve.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mjenn52

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

e


CORALGRILL2014

  • Member
  • Posts: 525
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Conjugate acid-base pairs consist of a proton donor and a proton acceptor Conjugate acid-base pairs consist of a proton donor and a proton acceptor
Bank Bank
Monopoly, patented in 1935, was an instant best-seller: Players risk all their assets in an attempt Monopoly, patented in 1935, was an instant best-seller: Players risk all their assets in an attempt
Compression ratio is the ratio of the total cylinder volume (when the piston is at the bottom of ... Compression ratio is the ratio of the total cylinder volume (when the piston is at the bottom of ...
Potential gas reserves have increased significantly with the discovery of new shale gas formations Potential gas reserves have increased significantly with the discovery of new shale gas formations
Total Fertility Rate in the United States, 1860–2008 Total Fertility Rate in the United States, 1860–2008
Video: Metaphase I Animation

For a complete list of videos, visit our video library