Macroeconomics Ch. 11
Refer to Table 13.2. With total reserves of $80,000 and a required reserve ratio of 25 percent, ABC Bank could support maximum transactions account balances of:
$ 320,000
Refer to Table 13.2. If ABC Bank has a required reserve ratio of 15 percent, it can legally increase its loans by a maximum of:
$ 50,000
Suppose a bank has $5,000,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $1,000,000. Then the bank has excess reserves of:
$0
A single bank with $20,000 of reserves and a reserve ratio of 5 percent could support total transactions account balances of at most:
$400,000.
Suppose a bank has $2 million in deposits, a required reserve ratio of 10 percent, and total reserves of $500,000. Then it has excess reserves of:
$45,000
If excess reserves are $30,000, demand deposits are $100,000, and the required reserve ratio is 15 percent, then total reserves are:
$45,000.
suppose a bank has $300,000 in deposits and a required reserve ratio of 15 percent. Then required reserves are: Selected Answer:
$45,000.
Suppose University Bank has zero excess reserves. If the required reserve ratio decreases, the
Bank will be able to make more loans.
Deposit creation occurs when:
Correct A bank lends money.
Initially a bank has a required reserve ratio of 20 percent and no excess reserves. If $5,000 is deposited into the bank, then ceteris paribus:
Correct This bank can increase its loans by $4,000.
The ratio of a bank's reserves to its total transactions deposits is known as the:
Reserve ratio.
Banks make loans to all of the following except:
The Federal Reserve for deposit creation.
If bank customers decided as a group to pay off their loans and do not take out any new loans, ceteris paribus: Selected Answer:
The money supply will decrease.
Excess reserves are:
Total reserves less required reserves.
Which of the following is a bank liability?
Transactions account balances