ps_ch22_a - a Draw a T – account for this bank and show...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem Set For Chapter 22 - a The Money Supply and The Federal Reserve System 1) Draw a T – account for a bank and write in the typical items that one would find on either side. Note : Typical items include Demand Deposits Cash Reserves Government Bonds Loans 2) If the required reserve ratio is 20 % and a bank has $ 1 million in demand deposits, how much reserve must the bank keep with the Central Bank? 3) Assume that Bank of ZTB open its doors to depositors and receives $ 100.000 in cash deposits. Assume the required reserve ratio is 20 %.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: a) Draw a T – account for this bank and show the current situation. b) How much is excess reserves? c) Could this bank make a loan of $ 90.000? d) If the required reserve ratio is 10 %, how would your answer to “b” change? 4) Why the barter system is inefficient? 5) Which of the following are money and which are not? a) A credit card b) A dollar bill c) Funds in a checking account 6) What are the differences between the medium of exchange, store of value, and unit of account roles of money?...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online