Exam 8: Money and Banking

Suppose the following information for Ables Bank: If the bank was fully loaned up,what is the value of outstanding loans and deposits for Ables Bank if the target reserve ratio is a)10% b)25% c)50%

Suppose the following information for Trust Bank,reserves are $1,000 and the target reserve ratio is 25%.If the bank is fully loaned up,what is the amount of loans? Assuming that the bank has no other assets or liabilities.

What is true about deposits in near-banks such as credit unions?

When would we expect the value of the money multiplier to be smaller?

Suppose that a banking system has $10,000,000 in demand deposits and actual reserves of $1,200,000.If the target reserve ratio for all banks is 10 percent,what is the maximum possible expansion of the money supply?

The following table shows the balance sheet for all banks combined in the banking system.All banks have a target reserve ratio of 12.5 percent. a)What is the amount of excess reserves. b)What is the maximum amount that loans and deposits can be increased? c)If the banking system were fully loaned up,by how much will the money supply have increased?

What would be the result if the target reserve ratio was lowered?

Which of the following will result in a larger money multiplier?

The following is the balance sheet of the whole banking system (all figures are in $billions)which has a target reserve ratio of 20 percent: -Refer to the information above to answer this question.Assume that a cash deposit of $20 is made into a chequing account in the banking system.As a result,what will be the amount of excess reserves?

Fill in the blanks in the balance sheet of the Orion Bank shown below assuming that the value of fixed assets is the same as shareholders' equity and that the bank is fully loaned up.The target reserve ratio is 6 percent.

All of the following statements,except one,are correct.Which is the exception?

Which of the following is a major function of money?

What is the difference between the M1 and M2 definitions of money?

If a bank has demand deposits of $160,000,reserves of $15,000 and excess reserves of $2,200,then what must its target reserve ratio be?

What is the book value of a firm to its shareholders called?

What are the term deposits of businesses known as?

What are a bank's target reserves equal to?

Until what date were commercial banks in Canada empowered to issue their own bank notes?

Why are notice deposits not included in the M1 definition of money?

Suppose that the Canucks Bank has excess reserves of $6,000 and demand deposits of $100,000.If its targeted reserve ratio is 10 percent,what is the size of the bank's actual reserves?