If a single banks faces a required reserve ratio of 20 percent, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the maximum amount of money this bank could create (add to the money supply)

Question

01-04-2022
Business

Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Our platform connects you with professionals ready to provide precise answers to all your questions in various areas of expertise. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

If a single banks faces a required reserve ratio of 20 percent, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the maximum amount of money this bank could create (add to the money supply)

Sagot :

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.

Suppose you earn $7.25 per hour working part-time for a florist. Write and solve an inequality to find how many full hours you must work to earn at least $125.

Which statement is true? A.|–8|< |8| B.|–2| > 1 C.|–7| = –7 D.|12| > |–15|

Can anyone tell me this answer? Share £420 in the ratio 2:3?

What goals did the movement of the new left achieve?

What is 3 divided by 387 with a magnitude estimate

in many cells, the structure that controls the cell's activities is the

What is 3 divided by 387 with a magnitude estimate

How did glaciers change the land of the northeast region?

The temperature for the past 8 hours has been changing at the rate of-1.5 degrees each hour. The meteorologist predicts that the temperature will continue chang

A number is such that its ten digit is twice its unit digit. Prove that the number itself must be seven times the sum of its digit

ewomazinoade ewomazinoade · Answer 1 · 2022-04-04T04:37:47-04:00

Tthe maximum amount of money this bank could create given the checkable deposits is $2,000,000.

What is the maximum amount of money the banik can create?

The maximum amount of money the bank create is a function of the reserve ratio and the checkable deposits. Reserve ratio is the percentage of deposits that must be kept as reserves.

Maximum deposit = deposits / reserve ratio

$400,000/ 0.2 = $2,000,000

To learn more about required reserves, please check: https://brainly.com/question/26960248

If a single banks faces a required reserve ratio of 20 percent, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the maximum amount of money this bank could create (add to the money supply)

Sagot :

What is the maximum amount of money the banik can create?

Other Questions