3 answers

ECO 2251

Question:

Suppose that Big Bucks Bank has the simplified balance sheet shown below and that the reserve ratio is 10 percent:
Instructions: All answers to this question should be entered as whole numbers.
________________________________________ ________________________________________
Assets Liabilities and net worth
(1) (2) (1' ) (2' )
________________________________________ ________________________________________
Reserves
$24,000$
$Checkable deposits$ 100,000 
Securities
38,000

Loans
38,000

a. What is the maximum amount of new loans that Big Bucks Bank can make? $Show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount. b. By how much has the supply of money changed?$
c. How will the bank’s balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against this bank? Show this new balance sheetin column 2 and 2'.
d. Revisit parts a., b., and c., and provide answers below based on the assumption that the reserve ratio is now 5 percent.
What is the maximum amount of new loans that this bank can make? $Show in column 3 and 3' (below) how the bank’s balance sheet will appear after the bank has lent this additional amount. By how much has the supply of money changed?$
________________________________________ ________________________________________
Assets Liabilities
(3) (4) (3' ) (4' )
________________________________________ ________________________________________
Reserves $24,000$
$Checkable deposits$ 100,000 
Securities 38,000

Loans 38,000

How will the bank’s balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against this bank? Show this new balance sheet incolumn 4 and 4' in the table above.

Answers

Similar Solved Questions

1 answer
Check my work Required information The folliowing information applies to the questions displayed below Pirates Incorporated...
Check my work Required information The folliowing information applies to the questions displayed below Pirates Incorporated had the following balances at the beginning of September. Part 3 of 3 PIRATES INCORPORATED Trial Balance September 1 points Accounts Debits Credits s 5,700 1,700 6,800 10,400 S...
1 answer
Both ques pls Question 26 1 pts Information can be retrieved fastest from: USB flash drive....
both ques pls Question 26 1 pts Information can be retrieved fastest from: USB flash drive. magnetic tape. optical disk. hard disk. Question 27 7 pts Suppose we have a byte-addressable computer with a cache that holds 8 blocks of 4 bytes each. Assuming that each memory address has 8 bits, to which c...
1 answer
'Who are the decision makers and how do they make decisions?
'Who are the decision makers and how do they make decisions?...
1 answer
You need to interpret the results of a recent paired t-test. What does the following mean?...
You need to interpret the results of a recent paired t-test. What does the following mean? The test statistic t-value = -1.47 and the p-value = 0.01. A.) The small p-value means there is great chance of getting data like observed here again. Because the p-value is so small, the null hypothesis canno...
1 answer
(24) One mole of acetyl chloride is added to a liter of triethylamine, resulting in a...
(24) One mole of acetyl chloride is added to a liter of triethylamine, resulting in a vigorous exothermic reaction. Once the reactionmixture has cooled, 1 mole of ethanol is added. Another vigorous exothermic reaction results. The mixture is analyzedand found to contain triethylamine, ethyl acetate,...
1 answer
Choose the sequence of reagents which would best accomplish the following transformation: 2-bromopropane ----------> 1,2-dibromopropane [(R)...
Choose the sequence of reagents which would best accomplish the following transformation: 2-bromopropane ----------> 1,2-dibromopropane [(R) + (S)] 01. (i) KMnO4, NaOH in water at 0 °C 2. (i) Br2 in CCl4 (ii) excess NaNH2 (iii) CH31 (iv) H20, H2SO4, HgSO4 Choose the sequence of reagents which...
1 answer
How the developing nursing profession contributed to the history of the health care system
how the developing nursing profession contributed to the history of the health care system...
1 answer
Answer all parts of the questions Wower all parts. (a) 1,4-dihydroxynaphthalene can be converted to either...
Answer all parts of the questions Wower all parts. (a) 1,4-dihydroxynaphthalene can be converted to either the syn stereoisomers as shown below. Each conversion may require more For each conversion give reagents that formed. erica to either the syn-diol or the anti-diol clow. Each conversion may...
1 answer
1 answer
C. Drug toxicity D. Hyperglycemia Use this scenanio to answer the next 2 questions You are caring for a 5 year-old...
C. Drug toxicity D. Hyperglycemia Use this scenanio to answer the next 2 questions You are caring for a 5 year-old boy with a 4-day history of high fever and cough He is having increasing ethargy, grunting, and sleepiness. Now he is difficult to arouse and is urnresponsive to voice commands His oxyg...
1 answer
Question 49 (2 points) Which of the following compounds is consistent with the following IR spectrum?...
Question 49 (2 points) Which of the following compounds is consistent with the following IR spectrum? m how wenn Ref: SDBS - National Institute of Advanced Industrial Science and Technology OH COOH IV a) 11 Ob) III Oc) d) IV Question 50 (2 points) Rank absorption of the indicated bonds in decreasing...
1 answer
Because a raindrop is "soft" and deformable, the collision duration is a relatively long 8.0 ms. How many times larger...
Because a raindrop is "soft" and deformable, the collision duration is a relatively long 8.0 ms. How many times larger than gravity is the mosquito's average acceleration during the collision? This is the information I have so far: A hovering mosquito is hit by a raindrop that is 45 time...
1 answer
Arlington Steel Company is a producer of raw steel and steel-related products. On January 3, 2022,...
Arlington Steel Company is a producer of raw steel and steel-related products. On January 3, 2022, Arlington enters into a firm commitment to purchase 10,000 tons of iron ore pellets from a supplier to satisfy spring production demands. The purchase is to be at a fixed price of \$63 per ton on April ...
1 answer
How many ways can you arrange 6 magazines on a coffee table from 10 magazines.
How many ways can you arrange 6 magazines on a coffee table from 10 magazines....
1 answer
Chapter 14 Long-Term Liabilities: Bonds and Notes 705 0BJ.3 p685 PE 14-4B Discount amortization Using the...
Chapter 14 Long-Term Liabilities: Bonds and Notes 705 0BJ.3 p685 PE 14-4B Discount amortization Using the bond from Practice Exercise 14-3B, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. OB) EE 14-5 p 685 PE 14-5B Issuing bonds ...
1 answer
(10% ) Problem 9: Suppose you first walk 11 m in a direction 20° west of...
(10% ) Problem 9: Suppose you first walk 11 m in a direction 20° west of north and then 23.5 m in a direction 40° south of west as shown in the figure. 40° 20° Otheexpertta.com 25% Part (a) what is the component of your displacement in the x-direction, in meters? Grade Summary Potent...
1 answer
How does activation energy affect kinetic energy? Why is it that you neglect the activation energy of the forward reacti...
how does activation energy affect kinetic energy? Why is it that you neglect the activation energy of the forward reaction? When oversimplified Eafwd is So Small thot we eglect it Fa Potential energy Reaction coordinate +G +heat + Bo Energy...