« previous next »

Author Question: The Second National Bank of Townville has 400,000 in checking deposits, 125,000 in savings deposits, ... (Read 124 times)

xroflmao

  • Hero Member
  • *****
  • Posts: 515
on: Jun 29, 2018
The Second National Bank of Townville has 400,000 in checking deposits, 125,000 in savings deposits, 500,000 in loans, 20,000 in its reserve account at the Fed, and 5,000 of currency in its vault. What is the amount of its reserves?
 
  What will be an ideal response?

Question 2

Refer to the scenario above. In equilibrium, Beth's payoff is ________.
 
  A) 10
  B) 0
  C) 20
  D) 50


wshriver

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

Reserves include the bank's deposit in its reserve account at the Fed and the currency in its vault. Therefore the Second National Bank of Townville has 20,000 + 5,000 = 25,000 in reserves.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
Video: Types of energy transfer reactions: oxidation-reduction reactions and ATP generation reactions

For a complete list of videos, visit our video library