please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly Suppose you win on a scratch-off lottery ticket and you decide to put all of your $2,500 winnings in the bank. The reserverequirement is 10%.What is the maximum possible increase in the money supply as a result of your bank deposit?maximum increase: $250IncorrectWhich events could cause the increase in the money supply to be less than its potential?Banks choose to loan out all excess reserves.Banks decide to keep some excess reserves on hand.Some loan recipients choose to hold some cash instead of depositing all of it in banks.All money loaned out is deposited back into the banking system.

The maximum possible increase in the money supply resulting from your bank deposit can be determined…

Answered: Suppose you win on a scratch-off…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter13: Monetary Policy

Section: Chapter Questions

Problem 8E

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Suppose you win on a scratch-off lottery ticket and you decide to put all of your $2,500 winnings in the bank. The reserve requirement is 10%. What is the maximum possible increase in the money supply as a result of your bank deposit? maximum increase: $ Which events could cause the increase in the money supply to be less than its potential? All money loaned out is deposited back into the banking system. Banks choose to loan out all excess reserves. SEL Some loan recipients choose to hold some cash instead of depositing all of it in banks. Banks decide to keep some excess reserves on hand. C Z MODE PAYLA I topm PEDRULESTAN SVETE D P Activate Windows Salto Settings to activate Windows
ou just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 1212%, how much will your deposit increase the total value of checkable bank deposits? $ If the reserve requirement is 44%, how much will your deposit increase the total value of checkable deposits? $ Increasing the reserve requirement the money supply.
Suppose you win on a scratch-off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve requirement is 5%. What is the maximum possible increase in the money supply as a result of your bank deposit? maximum increase: $ Which events could cause the increase in the money supply to be less than its potential? Banks choose to loan out all excess reserves. Some loan recipients choose to hold some cash instead of depositing all of it in banks. Banks decide to keep some excess reserves on hand. All money loaned out is deposited back into the banking system.
You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 20%, how much will your deposit increase the total value of checkable bank deposits? If the reserve requirement is 8%, how much will your deposit increase the total value of checkable deposits? Increasing the reserve requirement decreases the money supply. %24 %24
Some individuals have suggested raising the required reserve ratio for banks to 100 percent in a limited reserve banking system. a. What would the money multiplier be if this change was made? Assume people hold no cash. Instructions: Enter your response as a whole number. b. What effect would such a change have on the money supply? The money supply would decrease c. How could that effect be offset? By a decrease in government spending By an increase in government spending By an increase in taxes
1) While cleaning your apartment, you look under the sofa cushion and find a $50 . You deposit this in your checking account. Money multiplier is 5. Assume no Required reserves. a. What is the maximum amount that the money supply could increase?b. What is the minimum amount that the money supply could increase? 2) Q3Suppose that there is $1000 currency in circulation. Calculate the total impact on MoneySupply under each of the following scenariosi. No banking systemii. 100% reserve system, all $1000 is deposited in ABC bank.iii. Fractional reserve banking system. (RR=10%). $1000 is deposited with ABC, ABC bank decides to loan out all excess reserves
Suppose you win on a scratch-off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve requirement is 5%. How much maximum of new money will be created (maximum amount of new checking deposits created by the banking system) as a result of your bank deposit? Hint: do not count your initial deposit as part of increase. Number $70000 ☐ ☐ Incorrect. The bank can only loan out excess reserves. Calculate the excess reserves after the lottery winnings were deposited, than multiple that number by the money multiplier. Which events could cause the increase in the money supply to be less than its potential? Check all that apply. Some loan recipients choose to hold some cash instead of depositing all of it in banks. All money loaned out is deposited back into the banking system. Banks decide to keep some excess reserves on hand. Banks choose to loan out all excess reserves.
You take $300 you had kept under your mattress and deposit it in your bank account. Suppose this $300 stays in the banking system as reserves and banks hold reserves equal to 15 percent of deposits. The total amount of deposits in the banking system increases by $ supply increases by $. and the money
Suppose Robina Bank receives a deposit of $54,589 and the reserve requirement is 3%. Answer the questions using this information. Round your answers to two decimal places. What is the amount that Robina Bank must keep on hand as required by the Federal Reserve (Fed)? keep on hand: $ What is the amount that Robina Bank must have in excess reserves from this initial deposit? excess reserves: S What is the total change in the M1 money supply from this one deposit? total change: $
XYZ bank has $500 of reserves, $500 of loans and $1000 of deposits. Let's suppose that the required reserve ratio is 10%. How much could the bank make in additional loans right now? How much will be the excess reserves? How much could the bank make in additional loans right now? How much will the money supply increase after the money creation process is finished?

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