boulderhead
New Member
- Joined
- Feb 4, 2008
- Messages
- 3
- Gender
- Male
- HSC
- 2007
Hey, I've been lingering the boards for quite a while, reading around, but I decided to sign up because you guys seem really helpful, and I need some help on my take home test for Macroeconomics.
Any help would be absolutely amazing! It's 200 questions but I answered pretty much all of them, but there are 2 sections where I am completely stumped.
Scenario:
Wachovia Bank Balance Sheet
Assets ---------------------- Liabilities
___________________________________________
Reserves ---------------------Demand Deposits $250,000
Required $25,000
Excess $10,000
Total Reserves $35,000
Loans $215,000
____________________________________________
Total Assets $250,000--------Demand Liabilities $250,000
81. Based on this bank balance sheet, the Wachovia bank can make additional loans up to...
A) $50,000
B) $10,000
C) $25,000
D) $250,000
82. Based on this sheet, the Wachovia Bank could
a) not change its assets portfolio
b) use all reserves to make more loans or buy govt securities
c) use its excess reserves to make more loans or buy govt securities
d) use its excess reserves to decrease its liabilities
83. If the required reserve ratio is 10% and reserves in the commercial banking system increase by $10,000, the maximum possible expansion of demand deposits is..
A) $100,000
B) $10,000
C) $1,000,000
D) $90,000
88. Assume that required reserves are 20%. If the Fed buys $1,000 worth of bonds from a member bank, then the banking system can
A) Increase loans by a maximum of $4,000
B) Decrease loans by a maximum of $5,000
C) Increase loans by a maximum of $5,000
D) Decrease loans by a maximum of $4,000
-----------------
ABC Bank Balance Sheet
Assets -------------------------- Liabilities
__________________________________________________
Reserves $25,000 --------- Demand Deposits $100,000
Required $20,000
Excess $5,000
Loans $75,000
___________________________________________________
Total Assets $100,000--------Total Liabilities $100,000
148. According to this Table, the required reserve ratio for ABC Bank is
A) 10%
B) 15%
C) 5%
D) 20%
149. Suppose that $10,000 in new deposits is received by the ABC Bank. If there were no other changes in the balance sheet, then the bank would be in a position to make new loans in the amount of...
A) $15,000
B) $8,000
C) $10,000
D) $13,000
XYZ Bank Balance Sheet
Assets--------------------------Liabilities
__________________________________________
Reserves $200,000-------- Demand Deposits $1,000,000
Required
Excess
Loans
___________________________________________________
Total Assets $1,000,000-------Total Liabilities $1,000,000
150. If the required reserve ratio is 20%, which of the following is FALSE?
A) XYZ Bank has zero excess reserves
B) XYZ Bank has not extended all the credit it can
C) Required reserves equal total reserves
D) XYZ Bank can extend no new loans
151. If required reserves are $150,000, the required reserve ratio for XYZ Bank is
A) 25%
B) 15%
C) 1.5%
152. If excess reserves for XYZ Bank are $30,000, the required reserve ratio is
A) 30%
B) 17%
C) 20%
D) cannot be determined
And just some random ones that I couldn't figure out...
39. If the Federal Reserve sells $100 of securities through a commercial bank when the reserve requirement is 10%, the money supply may ultimately
A) Decrease by $100
B) Increase by $1000
C) Increase by $100
D) Decrease by $1000
74. A bank with $200 million in deposits keeps $20 million of cash in the bank vault, $10 million in deposits at the FEd, and $5 million in govt securities in the bank vault. Its legal reserves equal
A) $10 million
B) $20 million
C) $35 million
D) $30 milion
75. The required reserve ratio is 10%. All banks have zero excess reserves. A check for $500,000 is deposited in Bank A, written on an account at Bank B. By how much does the money supply change if all banks make loans so that they have zero excess reserves?
A) $450,000
B) 0
C) $4,500,000
D) $500,000
79. The federal funds market is
A) a private market in which depository institution can borrow and lend reserves
B) the market in which the US govt borrows money
C) the market in which the FEd loans reserves to depository institutions
D) the market in which US govt securities are bought adn sold
80. The discount rate is the
B) interest rate on short term govt bonds
C) interest rate the Fed charges on loans made to depository institutions
D) required reserve ratio on savings accounts
9. The reason that the commercial banking system can generate a multiple expansion or contraction of the moeny supply is that
A) banks are required to hold only a fraction of their deposits as reserves
B) most banks maintain a relatively large stock of excess reserves
C) banks generally have surplus funds on deposit with other banks
D) banks hold reserves equal to their net worth
98. The opportunity cost of holding money is measured by
A) the interest yield that could have been earned by holding some other asset
C) the liquidity of interest-bearing assets
188. What if NOT a function of the Fed?
A) holding reserves for banks
B) supervising banks
C) lending funds to credit worthy private firms
D) regulating money supply
197. A Eurodollar is
A) a deposit of European currency in the United States
B) a deposit in US dollars held outside the United States
C) a share of US stock traded in European markets
D) the currency issued by the World Bank
200. Assume a firm can produce a combination of 60 Units of X together with 80 units of Y, but to produce 70 units of X, the firm can only produce 60 units of Y. What is the opportunity cost to produce 10 more units of X?
A) 10 units of X
B) two units of Y
C) 20 units of Y
D) one-half unit of X
Thanks ahead of time! Even if you only have the answer to one of them, it would still help me out a lot. Thanks again!
Any help would be absolutely amazing! It's 200 questions but I answered pretty much all of them, but there are 2 sections where I am completely stumped.
Scenario:
Wachovia Bank Balance Sheet
Assets ---------------------- Liabilities
___________________________________________
Reserves ---------------------Demand Deposits $250,000
Required $25,000
Excess $10,000
Total Reserves $35,000
Loans $215,000
____________________________________________
Total Assets $250,000--------Demand Liabilities $250,000
81. Based on this bank balance sheet, the Wachovia bank can make additional loans up to...
A) $50,000
B) $10,000
C) $25,000
D) $250,000
82. Based on this sheet, the Wachovia Bank could
a) not change its assets portfolio
b) use all reserves to make more loans or buy govt securities
c) use its excess reserves to make more loans or buy govt securities
d) use its excess reserves to decrease its liabilities
83. If the required reserve ratio is 10% and reserves in the commercial banking system increase by $10,000, the maximum possible expansion of demand deposits is..
A) $100,000
B) $10,000
C) $1,000,000
D) $90,000
88. Assume that required reserves are 20%. If the Fed buys $1,000 worth of bonds from a member bank, then the banking system can
A) Increase loans by a maximum of $4,000
B) Decrease loans by a maximum of $5,000
C) Increase loans by a maximum of $5,000
D) Decrease loans by a maximum of $4,000
-----------------
ABC Bank Balance Sheet
Assets -------------------------- Liabilities
__________________________________________________
Reserves $25,000 --------- Demand Deposits $100,000
Required $20,000
Excess $5,000
Loans $75,000
___________________________________________________
Total Assets $100,000--------Total Liabilities $100,000
148. According to this Table, the required reserve ratio for ABC Bank is
A) 10%
B) 15%
C) 5%
D) 20%
149. Suppose that $10,000 in new deposits is received by the ABC Bank. If there were no other changes in the balance sheet, then the bank would be in a position to make new loans in the amount of...
A) $15,000
B) $8,000
C) $10,000
D) $13,000
XYZ Bank Balance Sheet
Assets--------------------------Liabilities
__________________________________________
Reserves $200,000-------- Demand Deposits $1,000,000
Required
Excess
Loans
___________________________________________________
Total Assets $1,000,000-------Total Liabilities $1,000,000
150. If the required reserve ratio is 20%, which of the following is FALSE?
A) XYZ Bank has zero excess reserves
B) XYZ Bank has not extended all the credit it can
C) Required reserves equal total reserves
D) XYZ Bank can extend no new loans
151. If required reserves are $150,000, the required reserve ratio for XYZ Bank is
A) 25%
B) 15%
C) 1.5%
152. If excess reserves for XYZ Bank are $30,000, the required reserve ratio is
A) 30%
B) 17%
C) 20%
D) cannot be determined
And just some random ones that I couldn't figure out...
39. If the Federal Reserve sells $100 of securities through a commercial bank when the reserve requirement is 10%, the money supply may ultimately
A) Decrease by $100
B) Increase by $1000
C) Increase by $100
D) Decrease by $1000
74. A bank with $200 million in deposits keeps $20 million of cash in the bank vault, $10 million in deposits at the FEd, and $5 million in govt securities in the bank vault. Its legal reserves equal
A) $10 million
B) $20 million
C) $35 million
D) $30 milion
75. The required reserve ratio is 10%. All banks have zero excess reserves. A check for $500,000 is deposited in Bank A, written on an account at Bank B. By how much does the money supply change if all banks make loans so that they have zero excess reserves?
A) $450,000
B) 0
C) $4,500,000
D) $500,000
79. The federal funds market is
A) a private market in which depository institution can borrow and lend reserves
B) the market in which the US govt borrows money
C) the market in which the FEd loans reserves to depository institutions
D) the market in which US govt securities are bought adn sold
80. The discount rate is the
B) interest rate on short term govt bonds
C) interest rate the Fed charges on loans made to depository institutions
D) required reserve ratio on savings accounts
9. The reason that the commercial banking system can generate a multiple expansion or contraction of the moeny supply is that
A) banks are required to hold only a fraction of their deposits as reserves
B) most banks maintain a relatively large stock of excess reserves
C) banks generally have surplus funds on deposit with other banks
D) banks hold reserves equal to their net worth
98. The opportunity cost of holding money is measured by
A) the interest yield that could have been earned by holding some other asset
C) the liquidity of interest-bearing assets
188. What if NOT a function of the Fed?
A) holding reserves for banks
B) supervising banks
C) lending funds to credit worthy private firms
D) regulating money supply
197. A Eurodollar is
A) a deposit of European currency in the United States
B) a deposit in US dollars held outside the United States
C) a share of US stock traded in European markets
D) the currency issued by the World Bank
200. Assume a firm can produce a combination of 60 Units of X together with 80 units of Y, but to produce 70 units of X, the firm can only produce 60 units of Y. What is the opportunity cost to produce 10 more units of X?
A) 10 units of X
B) two units of Y
C) 20 units of Y
D) one-half unit of X
Thanks ahead of time! Even if you only have the answer to one of them, it would still help me out a lot. Thanks again!