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Homework answers / question archive / Forest Hills High School - ECO MACROECONO Chapter 14 Question1)Stealth bank has deposits of $700 million
Forest Hills High School - ECO MACROECONO
Chapter 14
Question1)Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The banks loans, if sold at current market value, would be worth $600 million. What is the total value of Stealth bank’s assets?
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Which of the following would be classified in the M1 category of the money supply? |
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The quantity of money in an economy and the _____________________ are inextricably intertwined. |
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If loans become far less available, then sectors of the economy that ______________ like business investment, home construction, and car manufacturing can be dealt a crushing blow. |
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Lance paid $175,000 for his house in 2003 and sold it for $325,000 in 2006. What function did the house serve during the time Lance owned it? |
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The term ___________________ describes the proportion of deposits that the bank must hold in the form of reserves that are not loaned out or invested in bonds. |
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Which of the following terms is considered to be a narrow definition of the money supply that includes, among other things, currency? |
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An individual bank can, at most, lend out all of its: |
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Assume that the Federal Reserve sets the reserve requirement at 10%. If a bank has $100 million in deposits, then its required reserves must equal: |
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Assume that the reserve requirement is 20% and the Federal Open Market Committee buys a $100,000 bond. The money supply: |
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If Abigail withdraws $300 cash from her checking account, then her bank's assets: |
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If a bank has assets of $5 billion and liabilities of $4.8 billion: |
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If a bank is subject to a reserve requirement of 10% and if its reserve ratio is 33%, then all of the following are true EXCEPT that it: |
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If banks increase excess reserves to increase their ability to absorb a higher rate of defaults: |
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If the reserve requirement is 10%, then the potential money multiplier is ____ and the actual money multiplier is ____. |
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If the reserve requirement is 2.5% and a bank initially receives $30,000 in deposits from the Fed, then the maximum amount of money that the banking system can create is: |
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The growth of businesses such as Coinstar that convert coins into bank notes or gift cards caused money to ____ and the actual money multiplier to ____, ceteris paribus. |
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SCENARIO: Assume that the Empathy State Bank begins with the balance sheet below and is fully loaned up.
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Which of the following does NOT explain why the actual money multiplier and the potential money multiplier are different? |
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Which category of the money supply would you be contributing to if you invest in money market funds? |
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Banks typically come under financial stress because of: |
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If the central bank decreases the amount of reserves banks are required to hold from 20% to 10%, then: |
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________________ serves society in three functions: medium of exchange, unit of account, and store of value. |
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In modern economies, _____________________ receive money from savers and provide funds to borrowers. |
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_______________________ that require the depositor to commit to leaving their funds in the bank for a certain period of time, in exchange for a higher rate of interest are also called ________________. |
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Monday, August 5, 2019 7:10:25 PM EDT