fin 353 quiz 1 answer

fin 353 quiz 1 answer - Marks: 1 If a bank has $100,000 of...

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Marks: 1 If a bank has $100,000 of deposits, a required reserve ratio of 10 percent, and $37,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is? Choose one answer. a. 25,000 b. 30,000 c. 10,000 d. 15,000 Question 2 Marks: 1 . Use Table 2. Below is the balance sheet for Tribank. The required reserve ratio is 10%. Deposits fall by $10 million. How much money does the bank need to meet required reserves if any? Table 2 Assets Liabilities Reserves $ 16million Checkable Deposits $100 million Bank Capital $ 11 million T-bills $45 million Loans $50 million Choose one answer. a. $1 million b. $2 million c. $3 million d. $0 million Question 3 Marks: 5 Based on the videos we have seen how did the fractional reserve banking system come about? The banking system did not start using fractional reserves but it evolved to become fractional reserve banking. How did the videos explain why? Answer:
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Rich Text Editor ToolbarFormat Format Font Font Size Size Bold Italic Underline Strike Through Subscript Superscript Insert Special Character Inser Check Spelling Align Left Center Align Right Justify Decrease Indent Increase Indent Link Unlink Anchor Image Table Templates Text Color Back Elements path Use Ctrl+V to paste. About the HTML editor Question 4 Marks: 1 Other things equal, if the required reserve ratio was increased: Choose one answer. a. The money multiplier would decrease. b. The money multiplier would increase. c. Banks would lend more. d. Bank loans would not change. Question 5 Marks: 1 Use Table 5. Assume there is a loan loss of $10 million dollars. What is the old and new capital ratio? Table 5 Assets Liabilities Reserves $10 million Deposits $85 million Loans $90 million Capital $15 million Choose one answer. a. 15.00%, 16.66%. b. 15.00%, 5.56% c. 15.00%, 5.0% d. 17.65%, 5.0%.
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You are logged in as Qian Lu ( Logout ) You are here iLearn / FIN035303-F11R / Quizzes / Quiz I / ► Attempt 1 Quiz I <div> <h2 class="main">JavaScript must be enabled to continue!</h2> </div> Page: (Previous) 1 2 3 4 5 6 7 (Next) Question 11 Marks: 1 Assets Liabilities Reserves $10million Checkable Deposits $100 million Excess Reserves $5 million Bank Capital $ 10 million T-bills $45 million Loans $50 million Use Table above. Suppose there is a deposit outflow of $5 million dollars. The required reserve ratio is 10%. Are there excess reserves or a shortfall in reserves? Choose one answer. a. Excess of 1 million. b. Shortfall of 0.5 million. c. Excess of 0.50 million.
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d. Shortfall of 1 million Question 12 Marks: 1 Assume that the Federal Reserve prints $500 in currency and uses the currency to buy Treasury securities from the banking system. The banking system then loans out $900 of checking money. What is the new money supply, M1? Choose one answer.
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This note was uploaded on 09/28/2011 for the course FIN 353 taught by Professor Cobus during the Spring '08 term at S.F. State.

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fin 353 quiz 1 answer - Marks: 1 If a bank has $100,000 of...

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