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5 6 Page: (Previous) l 2 3 4 5 s 7 (Next) 21 Use Table 5 Suppose lhere is a deposit outﬂow oi$1n The reserve requiremem is 10%, wriieh adjuslmenl is allows ABC Bank In exactly salisiy reserve requirements? Meme 1 Suppose ABC Bank has lhefoiiowing: Choose one answer 22 Assume BankA receives $50 in deposils from the Fed and the reserve requirernenl is 15% Whal are he reserves lor Bank E assuming lhe $50 goeslhnrugh the money mulriplicalion process? Marks 1 A5545 Tableﬁ Liab Reserves. $16 Deposils 5““
Loans $84 BankCapilal $10
Securities ill] a. Has sulﬁcient reserves. I: Sell SA in ioans at a disoounl of75 cents on lire dollar c Borrow $5 from ille federal funds rnarke'l,
d Borrow $2 from ihe Fed, Bank Deposits Loans Reserves Tolal Choose one answer a 5
I: 3 a
e 4 e
d. 5 4
23 A bank needs we million Io meel reserve requiremenIs? Whal islhe seoorld masl desirable way to raise reserves in meel lrie requiremerrl’? (This queslien is rml asking lor Ihe mesl desirahle way ouune Marks 1 second most desirable way.) Choose one answer a. Bonow 76 million irorn Ihe Fed. I: Borrow i] 76 million lrorn annlher bank at lhe lederal hinds rale r: Sell1 miiiion dollars in ioans at 76 cents to the doliar d Sell 0 75 million ofTsoiiis 2‘ Use Tabie 8 to caiculale lne risk weighed caphal rario MFirsl Narionai Bank.
Reserves 8mm Checkable deposirs 510m
Treasury securities 830m Nonstrirnsiroﬁon Deposits $80m
Real Emle loans $25m
Commercial Loans 335m
Choose one answer a 8 33%
b. 7 1%
c 14 28%
d. 15 67%
25 A bank has 100 million dollars in deposits and 15 million dollars in reserves The required remrve ratio is 10%, There is a deposit outﬂow of ill million, What is Ihe shortfall in reserves"
Choose one answer a 6 million
I: 5 million
c 7 million
d. 4 million Save wiihrrul submiiﬁng Submit al and ﬁnish Page: (Previous) l 2 3 4 5 s 7 (Next) Van ere logged in as ohen Shari (Lowell ...
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- Spring '08