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

Author Question: Assume that the Paris First National Bank currently has deposits of 20 million. If the current ... (Read 72 times)

brutforce

  • Hero Member
  • *****
  • Posts: 540
on: Jun 30, 2018
Assume that the Paris First National Bank currently has deposits of 20 million. If the current required reserve ratio is raised from 20 percent to 40 percent, then:
 a. Paris First National Bank does not have to comply with the Federal Reserve mandate.
  b. required reserves will decrease from 16 million to 12 million.
  c. excess reserves will automatically increase by 20 million.
  d. Paris First National Bank must close out 4 million in loans.
  e. Paris First National Bank must increase its required reserves from 4 million to 8 million.

Question 2

Assume that the Paris First National Bank is a thriving bank with deposits of 20 million. If the required reserve ratio is 20 percent and the bank is fully loaned out, the bank will have outstanding loans totaling:
 a. 2 million.
  b. 4 million.
  c. 10 million.
  d. 16 million.
  e. 20 million.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

zhanghao

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

d


brutforce

  • Member
  • Posts: 540
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

tuate

  • Member
  • Posts: 332
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Tropical deciduous forest in Bandhavgarh National Park, India Tropical deciduous forest in Bandhavgarh National Park, India
Video: Genetic terms Animation

For a complete list of videos, visit our video library