Bank Reserves Suppose that the reserve ratio is .25, and that a bank has actual reserves of…


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28.99

Bank Reserves Suppose that the reserve ratio is .25, and that a bank has actual reserves of… 1 answer below » Bank Reserves Suppose that the reserve ratio is .25, and that a bank has actual reserves of $15,000, loans of $40,000, and demand deposits of $50,000. A. Excess reserves are $2500__________. B. This bank, being a single bank in a multibank system, can safely lend $___37500_. C. The multibank system can safely lend $__200000__. D. It is possible for the monetary base to increase by a total of $___150000_____. Assume now that the Fed lowers the reserve ratio to .20: E. This bank, being a single bank in a multibank system, can now safely lend $_40000___. F. The multibank system can safely View complete question » Bank Reserves Suppose that the reserve ratio is .25, and that a bank has actual reserves of $15,000, loans of $40,000, and demand deposits of $50,000. A. Excess reserves are $2500__________. B. This bank, being a single bank in a multibank system, can safely lend $___37500_. C. The multibank system can safely lend $__200000__. D. It is possible for the monetary base to increase by a total of $___150000_____. Assume now that the Fed lowers the reserve ratio to .20: E. This bank, being a single bank in a multibank system, can now safely lend $_40000___. F. The multibank system can safely lend $___250000__. G. It is now possible for the monetary base to increase by a total of $___. H. The increase/decrease in the potential money supply because of the decrease in the required reserve ratio is $_____. i just need G and H View less » Oct 21 2015 06:20 AM

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28.99