Bank 1 has deposits of $3,978 and reserves of $545. If the required reserve ratio is 10%, what is the value of the bank's excess reserves? Enter a whole number with no dollar sign.
Transcribed image text: Are the following statements true or false? When entering transactions on the T-Account balance sheet, there will always be at least two entries for each transaction.
Business; Economics; Economics questions and answers; 1. consider th t-account for bank1. when customers deposit funds into their checking account, there is an increase in bank 1s assets and liabilities. t orf 2. t or f. all interest rate in the ecnomy are set by the fed reserve 3.t or f. when credit card companies increase the credit limits for their customer, this increases the money supply ...
All else the same, if banks choose to hold fewer excess reserves the money supply will fall.
If the reserve ratio increases then the money multiplier will increase.
the reserve ratio measures the percentage of deposits available to be lent out.
If the Fed wants to increase the money supply they will buy U.S. government bonds.
Savings deposits are part of M2 but not part of M1.
All interest rates in the economy are set by the Federal Reserve.
All else the same, if households choose to hold more currency the money supply will fall.
All else the same, if banks choose to hold fewer excess reserves the money supply will fall.
If the reserve ratio increases then the money multiplier will increase.
the reserve ratio measures the percentage of deposits available to be lent out.
If the Fed wants to increase the money supply they will buy U.S. government bonds.
Savings deposits are part of M2 but not part of M1.
All interest rates in the economy are set by the Federal Reserve.
All else the same, if households choose to hold more currency the money supply will fall.