FIN 100 Week 2 Assignment Help | Strayer University
- strayer university / FIN 100
- 03 May 2019
- Price: $10
- Other / Other
FIN 100 Week 2 Assignment Help | Strayer University
Question 1.
Assume that Bank A receives a primary deposit of $100,000 and that it must keep reserves of 10 percent against deposits.
(1)
Prepare a simple balance sheet of assets and liabilities for the bank
immediately after the deposit is received.
(2)
Assume Bank A makes a loan in the amount that can be “safely lent.”
Show what the bank’s balance sheet of assets and liabilities would look like
immediately after the loan.
(3)
|
Now assume that a check in the amount of the “derivative deposit”
created in the second part was written and sent to another bank. |
|
Show what Bank A’s (the lending bank’s) balance sheet of assets and
liabilities would look like after the check is written. |
Question 2.
Assume a financial
system has a monetary base of $40 million. The required reserves ratio is 8
percent and there are no leakages in the system.
(1)
What is the size of
the money multiplier?
(2)
What will be the
system’s money supply?
USA 
India