macro: required reserves, excess reserves, and bank behavior

The reserve requirement in Westeros is 25%. Assume that banks keep no excess reserves and there are no other monetary leakages. What is the increase in the money supply from a new $500 deposit?

$1,600

The reserve requirement is 20%. Excellence Bank's balance sheet is shown below. If this bank sells all of the bonds it holds to the central bank, how much does this bank have in excess reserves?

$14,000

Banks in Hamsterville keep no excess reserves. The reserve requirement in Hamsterville is 10% What is the money multiplier?

10

The Third Bank of Chidi is one of many privately owned banks in Anagonye. It sells $200 worth of government securities that it had previously been holding Which of the following best describes the initial effect of this sale on the bank's balance sheet ?

Its excess reserves increase, but its total assets don't change.

The following is the balance sheet for Cricetinae Federal Bank which is one of many banks in Hamsterville. The reserve requirement in Hamsterville is 10%. How much in new loans can this bank make?

$15,000

The balance sheet for Chidi Bank is given below. Assume the reserve requirement is 20% If this bank sells all of the bonds it holds to the central bank, how much does this bank have in excess reserves?

$18,000

The central bank of Mordor has a 25% reserve requirement. Rose deposits $10,000 into her local, commercial bank in Mordor. How much will required reserves increase as a result of this deposit?

$2,500

The First Bank of Hamsterville operates under a fractional reserve system and the required reserve ratio is 20%. The bank has $100,000 in demand deposits, $50,000 in business loans, and $15,000 in consumer loans. Based on this information, how much does First Bank need to keep in required reserves?

$20,000

Following a large deposit, excess reserves at the Second National Bank of Middle Earth have increased by $20,000. How much was that large deposit if the reserve requirement in this country is 20%?

$25,000

Mesa Verde Bank has $80,000 in demand deposits, $20,000 in bonds, and no owner's equity. It has a reserve requirement of 5%. How much does Mesa Verde need to keep in required reserves?

$4,000

The central bank of Hamsterville requires banks to keep 20% of deposit accounts on reserve at the central bank. Assume all money is kept in banks and banks keep no excess reserves. What is the maximum increase in the money supply that occurs if there is a new deposit of $100?

$400

The central bank of Hamsterville requires banks to keep 20% of deposit accounts on reserve at the central bank. Assume all money is kept in banks and banks keep no excess reserves. What is the maximum increase in the money supply that occurs if the monetary base increases by $100?

$500

In Lincolnland the reserve requirement is 20% and banks keep no excess reserves. What is the money multiplier?

5

The balance sheet of the bank Mutual of Hamsterville is shown below. How do excess reserves change if the central bank lowers the reserve requirement from 25% to 20%?

Excess reserves increase by $5,000

First Bank has a reserve requirement of 25%. One of its customers, Gendry, found $10,000 buried in a pit inside his blacksmith shop and deposited it into First Bank. What happens to First Bank's required reserves and excess reserves as a result of this deposit?

Required reserves increase $2,500 excess reserves increase $7,500.

Mesa Verde Bank has $80,000 in demand deposits, $20,000 in bonds, and no owner's equity. It has a reserve requirement of 5%. Kim finds a bag with $2,000 in it and deposits it into the bank. What happens to Mesa Verde Bank's required reserves and excess reserves as a result of this deposit?

Required reserves increase by $100 excess reserves increase $1,900.

Bread Bank is one of many banks in Fredland and there is a currently a 10% reserve requirement. Its balance sheet is shown below. What happens to required reserves and excess reserves if the reserve requirement is increased to 20%

Required reserves increase to $20,000; excess reserves decrease to $5,000.

Burgin National Bank operates under a fractional reserve system and the required reserve ratio is 10%. The bank has $4,000 in owner's equity, $20,000 in demand deposits, $10,000 in business loans, and $7,000 in consumer loans. Based on this information, how much does Burgin National Bank need to keep in required reserves?

$2,000

The reserve requirement in Westeros is 25%. Assume that banks keep no excess reserves and there are no other monetary leakages. What is the maximum possible increase in the money supply if an additional $500 is added to the monetary base?

$2,000

The current balance sheet for the Third Bank of Westeros is shown below. The reserve requirement in Westeros is 25%. If Ygritte deposits $1000 into her checking account in the Third Bank of Westeros, how much will the bank have in excess reserves?

$750

The First Bank of Cloud City has total reserves of $1000 excess reserves of $800 and required reserves of $200. What is the dollar value of new loans that this bank can make?

$800

If the reserve requirement is 5% and banks keep no excess reserves, what is the money multiplier?

20

Assume all banks in Susanland fully loan out, all money is redeposited in banks, and there are no other monetary leakages. If the monetary base increases by $200 and this leads to an increase in the money supply of $1000, what is the reserve requirement in Susanland?

20%

Mitoocents Bank's balance sheet is shown below. The central bank currently has a reserve requirement of 50%. If the central bank lowers the reserve requirement to 25%, which of the following is the most likely outcome?

Excess reserves increase by $50,000.

The reserve requirement is 20%. Excellence Bank's balance sheet is shown below. If Jianyu withdraws $5,000 from his bank account, which of the following is true?

The bank has no excess reserves.