Homework Help: econ

Posted by boneesha on Friday, October 1, 2010 at 3:36pm.

1. A bank has $120 million in total assets, which are composed of reserves,
loans, and securities. Its only liabilities are $120 million in transactions
deposits. The banks exactly satisfies its reserve requirement, and its total
reserves equal $6 million. What is the required reserve ratio?

2. Suppose that the value of the potential money multiplier is equal to 4. What
is the required reserve ratio?

3. Suppose that the quantity of money in circulation is fixed but the income
velocity of money doules. If real GDP remains at its long-run potential
level, what happens to the equilibrium price level?

was just wondering if thers a formula for these prblems. how would i set up number 1??

No one has answered this question yet.

Answer this Question

Related Questions

macroeconimics - A bank has $120 million in total assets, which are composed of ...
Economic Help please - 1)What happen to the net public debt if the federal ...
Macroeconomics - A banks total assets equal 1 billion. It's Liabilities ...
macroeconomics - can anyone help with this question? What would happen to the ...
Macroeconomics - A bank has issued 4 billion in transactions deposits and 2 ...
econ 181 - What isthe max amount of new loans that this bank can make? How will ...
Econ - Change of reserves: An increase in foreign assets held by the central ...
Personal Fiance - Can someone check this and see if I am doing it right or not. ...
Reserves-PLEASE HELP! - The Norfolk Bank has $18,000 in excess reservces and the...
Macroeconomics - If it looks like a bank won't meet the Federal Reserve Bank...

For Further Reading

First Name:
School Subject:
Answer: