Business, 18.02.2020 22:56 miajacobs110
Bank Three currently has $500 million in transaction deposits on its balance sheet. The Federal Reserve has currently set the reserve requirement at 8 percent of transaction deposits.
a.
If the Federal Reserve decreases the reserve requirement to 5 percent, show the balance sheet of Bank Three and the Federal Reserve System just before and after the full effect of the reserve requirement change. Assume Bank Three withdraws all excess reserves and gives out loans, and that borrowers eventually return all of these funds to Bank Three in the form of transaction deposits. (Do not round intermediate calculations. Enter your answers in millions rounded to the nearest dollar amount.)
Panel A: Initial Balance Sheets
Federal Reserve Bank
Assets Liabilities
(Click to select)LoansReserve deposits at FedSecuritiesReserve accountsTransaction deposits $ million (Click to select)SecuritiesLoansReserve accountsTransaction depositsReserve deposits at Fed $ million
Bank Three
Assets Liabilities
(Click to select)LoansReserve accountsTransaction depositsReserve deposits at FedSecurities $ million (Click to select)Reserve deposits at FedReserve deposits $ million
(Click to select)Reserve deposits at accountsTransaction deposits million
Panel B: Balance Sheet after All Changes
Federal Reserve Bank
Assets Liabilities
(Click to select)Transaction deposits at FedReserve accounts $ million (Click to select)Reserve accountsReserve deposits at FedSecuritiesTransaction depositsLoans $ million
Bank Three
Assets Liabilities
(Click to select)LoansTransaction depositsReserve deposits at Fed $ million (Click to select)Reserve deposits at FedSecuritiesTransaction depositsLoansReserve accounts $ million
(Click to select)SecuritiesLoansReserve accountsTransaction depositsReserve deposits at Fed million
b.
Redo part (a) using a 10 percent reserve requirement. (Do not round intermediate calculations. Enter your answers in millions rounded to the nearest dollar amount.)
Panel A: Initial Balance Sheets
Federal Reserve Bank
Assets Liabilities
(Click to select)LoansSecuritiesReserve accountsReserve deposits at FedTransaction deposits $ million (Click to select)LoansTransaction depositsReserve deposits at FedSecuritiesReserve accounts $ million
Bank Three
Assets Liabilities
(Click to select)Reserve deposits at FedLoansReserve deposits $ million (Click to select)Reserve accountsTransaction depositsLoansReserve deposits at FedSecurities $ million
(Click to select)Reserve deposits at FedReserve accountsTransaction depositsLoansSecurities million
Panel B: Balance Sheet after All Changes
Federal Reserve Bank
Assets Liabilities
(Click to select)LoansTransaction deposits at FedReserve accounts $ million (Click to select)Reserve deposits at FedSecuritiesTransaction depositsLoansReserve accounts $ million
Bank Three
Assets Liabilities
(Click to select)Reserve deposits at accountsTransaction deposits $ million (Click to select)Transaction depositsReserve accountsReserve deposits at FedSecuritiesLoans $ million
(Click to select)Transaction accountsReserve deposits at FedLoans million
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 03:00, janeou17xn
Put each of them in order. you are a young entrepreneur with a startup business. you now seek credit from the bank to expand it. what are the steps you will have to take? 1. you support your loan application with relevant documents. 2. you fill out the loan application form at the bank 3. you get an approval for the loan and the money is disbursed to your business account 4. you use the credit to further your business plan. 5. you have an interview with the loan officer and you explain your business plan.
Answers: 1
Business, 22.06.2019 12:30, badgirl2005
Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.
Answers: 2
Business, 23.06.2019 11:10, chickennbutt0730
Danielle puts 8 percent of her paycheck in a 401(k) plan administered by her employer. danielle earns $55,000 per year and is in the 28 percent tax category. what annual tax savings does she get from her contribution? if her employer matches contributions on the first 5% of her salary dollar for dollar and the second 5% 50 cents on the dollar, how much will her employer put into her account this year?
Answers: 2
Business, 23.06.2019 13:30, sreeytran
Will give brainliest and 100 to best and correct project: benefit analysis study: small business expansion you are the owner of a small business that offers advertising services for your local homebuilding professionals. originally you were the only employee, working at your desktop at home. now your business is growing and you need to add more workers. the first assessment of your current situation: one worker, one desktop computer, one modem, one printer/scanner, one phone line (dsl). you also created a draft situation of what technology you will need if you add two more workers (three workers including yourself): three computers, one router, one printer/scanner, one phone line (wireless). do a one-page benefit analysis study that: compares the cost of adding two desktops vs. one or two laptops compares the cost of replacing the modem with a router/modem. compares the cost of building a wan vs. a lan or a vpn summarizes the total cost of maintaining your home office as the only computing space for your three-worker company. compare this cost with the option of building a network that includes your home office and two satellite locations. here are some questions you may want to consider: do i need a firewall to protect my company's data? are my two new workers' job responsibilities primarily mobile? are they going to be doing enough work in the field to justify owning laptops? what software needs to be installed in their computers for network connections (desktop vs. laptop)?! i will give 100 points and ! !
Answers: 3
You know the right answer?
Bank Three currently has $500 million in transaction deposits on its balance sheet. The Federal Rese...
Questions in other subjects:
English, 20.03.2020 01:17
Social Studies, 20.03.2020 01:17
History, 20.03.2020 01:17
Mathematics, 20.03.2020 01:17
History, 20.03.2020 01:17
