Econ Final Figures
Suppose the Bank of Tazi loaned the banks of Tazi 10 million tazes. Suppose also that both the reserve requirement and the percentage of deposits held as excess reserves stay the same. By how much would the money supply change? a. 250 million tazes b. 200 million tazes c. 125 million tazes d. None of the above is correct.
b
Suppose the Bank of Tazi purchased 50 million tazes of Tazian Treasury Bonds from the banks. Suppose also that both the reserve requirement and the percentage of deposits held as excess reserves stay the same. By how much does the money supply change? a. 625 million tazes b. 1,000 million tazes c. 1,250 million tazes d. None of the above is correct.
b
Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and the reserve ratio for Tazian Banks? a. 5 percent, 8 percent b. 4 percent, 8 percent c. 4 percent, 5 percent d. None of the above is correct.
c
Suppose the Central Bank of Namdia loaned the banks of Namdia 5 million dias. Suppose also that both the reserve requirement and the percentage of deposits held as excess reserves stay the same. By how much would the money supply of Namdia change? a. 60 million dias b. 50 million dias c. 40 million dias d. None of the above is correct.
c
The monetary policy of Namdian is determined by the Namdian Central Bank. The local currency is the dia. Namdian banks collectively hold 100 million dias of required reserves, 25 million dias of excess reserves, 250 million dias of Namdian Treasury Bonds, and their customers hold 1,000 million dias of deposits. Namdians prefer to use only demand deposits and so the money supply consists of demand deposits. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and what is the reserve ratio? a. 2 percent, 8 percent b. 8 percent, 10 percent c. 10 percent, 12.5 percent d. None of the above is correct.
c
. Assuming the only other thing Tazian banks have on their balance sheets is loans, what is the value of existing loans made by Tazian banks? a. 6,900 million tazes b. 7,125 million tazes c. 7,350 million tazes d. None of the above is correct.
a
Assuming the only other item Namdian banks have on their balance sheets is loans, what is the value of existing loans made by Namdian banks? a. 625 million dias b. 875 million dias c. 1,125 million dias d. None of the above is correct.
a
Suppose that the Bank of Tazi changes the reserve requirement to 3 percent. Assuming that the banks still want to hold the same percentage of excess reserves what is the value of the money supply after banks adjust to the change in the reserve requirement? a. 9,375 million tazes b. 10,000 million tazes c. 12,500 million tazes d. None of the above is correct to the nearest million tazes.
a
Suppose the Central Bank of Namdia purchases 25 million dias of Namdian Treasury Bonds from banks. Suppose also that both the reserve requirement and the percentage of deposits held as excess reserves stay the same. By how much would the money supply of Namdia change? a. 200 million dias b. 150 million dias c. 100 million dias d. None of the above is correct.
a