Homework answers / question archive / Use the following information about Macroland to answer this question Bank deposits at the central bank $100 millionCurrency in bank vaults   $50 millionCurrency held by the public   75 millionChequeable deposits  600 millionTraveller cheques      5 million a) What are bank reserves equal to in Macroland?   b) Suppose banks hold no excess reserves in Macroland? What is required reserves ratio given the information in this table?   c) If the public does not change its currency holdings, what will happen to the level of chequeable deposits in Macroland, relative to their initial level, if the central bank of Macroland purchases $ 10 million worth of treasury bills in the open market?   d) If the public does not change its currency holdings, what will happen to the level of chequeable deposits in Macroland, relative to their initial level, if the central bank of Macroland sells $ 5 million worth of treasury bills in the open market?

Use the following information about Macroland to answer this question Bank deposits at the central bank $100 millionCurrency in bank vaults   $50 millionCurrency held by the public   75 millionChequeable deposits  600 millionTraveller cheques      5 million a) What are bank reserves equal to in Macroland?   b) Suppose banks hold no excess reserves in Macroland? What is required reserves ratio given the information in this table?   c) If the public does not change its currency holdings, what will happen to the level of chequeable deposits in Macroland, relative to their initial level, if the central bank of Macroland purchases $ 10 million worth of treasury bills in the open market?   d) If the public does not change its currency holdings, what will happen to the level of chequeable deposits in Macroland, relative to their initial level, if the central bank of Macroland sells $ 5 million worth of treasury bills in the open market?

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Use the following information about Macroland to answer this question

Bank deposits at the central bank $100 millionCurrency in bank vaults   $50 millionCurrency held by the public   75 millionChequeable deposits  600 millionTraveller cheques      5 million

a) What are bank reserves equal to in Macroland?

 

b) Suppose banks hold no excess reserves in Macroland? What is required reserves ratio given the information in this table?

 

c) If the public does not change its currency holdings, what will happen to the level of chequeable deposits in Macroland, relative to their initial level, if the central bank of Macroland purchases $ 10 million worth of treasury bills in the open market?

 

d) If the public does not change its currency holdings, what will happen to the level of chequeable deposits in Macroland, relative to their initial level, if the central bank of Macroland sells $ 5 million worth of treasury bills in the open market?