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Question 28 marks 1 a bank needs 076 million to meet

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Question 28Marks: 1A bank needs 0.76 million to meet reserve requirements? What is the second most desirable way to raisereserves to meet the requirement? (This question is not asking for the most desirable way but the second mostdesirable way.)Choose one answer.a. Borrow .76 million from the Fed.b. Sell 0.76 million of T-bills.c. Borrow 0.76 million from another bank at the federal funds rate.d. Sell 1 million dollars in loans at 76 cents to the dollar .
Question 29Marks: 5Explain a situation where fractional reserve banking can help the economy? Explain a situation where it canhurt the economy. Use examples if needed.Lastly, explain how the Federal Reserve fits into banking system to prevent problems from fractional reservebanking.
Question 30Marks: 1Use Table 8 to calculate the risk weighted capital ratio of First National Bank.Table 7AssetsLiabilities
Reserves $10mCheckable deposits $70mTreasury securities $30mNon-transaction Deposits $80mReal Estate loans $25mCommercial Loans $95m
Page:(Previous)1234567(Next)Time RemainingYou are logged in asQian Lu(Logout)SF State HomeContact1600 Holloway Avenue, San Francisco, CA 94132 . Tel (415) 338-1111You are logged in asQian Lu(Logout)You are hereiLearn/FIN035303-F11R/Quizzes/Quiz I/► Attempt 1Quiz I
<div> <h2 class="main">JavaScript must be enabled to continue!</h2> </div>Page:(Previous)1234567Question 31Marks: 1What are the pros and cons of deposit insurance?
Question 32Marks: 1Use Table 7. Calculate the total risk adjusted assets.Table 7AssetsLiabilitiesReserves $5mCheckable deposits $40mTreasury securities $30mNon-transaction Deposits $80mReal Estate loans $20mCommercial Loans $75mChoose one answer.a. $100Mb. $95Mc. $75M
Page:(Previous)1234567Time RemainingYou are logged in asQian Lu(Logout)SF State HomeContact1600 Holloway Avenue, San Francisco, CA 94132 . Tel (415) 338-1111

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Term
Fall
Professor
cobus
Tags
Monetary Policy, Fractional reserve banking, reserve requirement, Qian LU

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