Levels Tought:
Elementary,Middle School,High School,College,University,PHD
Teaching Since: | Apr 2017 |
Last Sign in: | 16 Weeks Ago, 1 Day Ago |
Questions Answered: | 7567 |
Tutorials Posted: | 7349 |
BS,MBA, PHD
Adelphi University/Devry
Apr-2000 - Mar-2005
HOD ,Professor
Adelphi University
Sep-2007 - Apr-2017
Question 1
As the executive of a bank or thrift institution you are faced with an intense seasonal demand for loans. Assuming that your loanable funds are inadequate to take care of the demand, how might your Reserve Bank help you with this problem?
|
 |
Provide loans to depositories when additional funds are needed |
|
 |
Approve new loans |
|
 |
Provide oversight for the issuing of new loans arrangements |
|
 |
Monitor and manage new loan agreements |
Question 2
Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilities for Banc One immediately after the deposit is received.
|
 |
|
||||||||
|
 |
|
||||||||
|
 |
|
Question 3
Assume a financial system has a monetary base of $25 million. The required reserves ratio is 10 percent, and there are no leakages in the system. What is the size of the money multiplier?
|
 |
15.00 |
|
 |
11.00 |
|
 |
.999 |
|
 |
10.00 |
Question 4
Assume a financial system has a monetary base of $25 million. The required reserves ratio is 10 percent, and there are no leakages in the system. What will be the system's money supply?
|
 |
$300 Million |
|
 |
$200 Million |
|
 |
$250 Million |
|
 |
$275 Million |
Â
FIN----------- 10-----------0 W-----------eek----------- 2 -----------Hom-----------ewo-----------rk -----------Ans-----------wer----------- Ne-----------w-----------