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Exhibit 15-3 Balance sheet of Tucker National Bank AssetsLiabilities Required reserves$…

by | Sep 9, 2023 | accounting

 

Exhibit 15-3 Balance sheet of Tucker National Bank

 

AssetsLiabilities

Required reserves$  20,000Checkable deposits$100,000

Excess reserves0

Loans80,000

Total$100,000Total$100,000

 

 

184.The required reserve ratio in Exhibit 15-3 is:

a.10 percent.c.80 percent.

b.20 percent.d.100 percent.

185.Suppose Connie Rich deposits $100,000 into her checking account in the bank shown in Exhibit 15-3. The result would be a:

a.$20,000 increase in excess reserves.c.$100,000 increase in required reserves.

b.$20,000 increase in required reserves.d.zero change in required reserves.

186.Assume all banks in the system started with balance sheets as shown in Exhibit 15-3 and the Fed made a $100,000 open market purchase. The result would be a(n):

a.$500,000 expansion of the money supply.

b.$100,000 expansion of the money supply.

c.$20,000 contraction of the money supply.

d.infinite contraction of the money supply.

e.infinite expansion of the money supply.

187.Assume the Fed purchases a government security from a private dealer and pays with a Fed check of $100,000. If this check is deposited by the dealer in the bank shown in Exhibit 15-3, the bank can extend new loans in the amount of:

a.$20,000.c.$100,000.

b.$80,000.d.$120,000.

Exhibit 15-4 Balance sheet of Tucker National Bank

 

AssetsLiabilities

Required reserves$  4,000Checkable deposits$20,000

Excess reserves16,000

Loans0

Total$20,000Total$20,000

 

 

188.The required reserve ratio in Exhibit 15-4 is:

a.5 percent.c.15 percent.

b.10 percent.d.20 percent.

189.Suppose Connie Rich deposits $500 in the bank in Exhibit 15-4. The result would be that the bank must increase its required reserves to:

a.$4,100.c.$5,100.

b.$4,500.d.$5,500.

190.In Exhibit 15-4, the bank could make:

a.$1,000 in new loans.c.$16,000 in new loans.

b.$4,000 in new loans.d.$20,000 in new loans.

191.Assume all banks in the system started with the balance sheet shown in Exhibit 15-4 and the Fed makes a $1,000 open market purchase. The result would be a(n):

a.infinite contraction of the money supply.c.$1,000 expansion of the money supply.

b.infinite expansion of the money supply.d.$5,000 expansion of the money supply.

 

 

  

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