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Old 03-13-2008, 05:49 PM
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Economics/Accounting, Please help?

1.Assuming a 15 percent reserve requirement and a $6 million deposit of coins by Scrooge McDuck into his checking account, calculate the initial change in his bank’s:
a.Reserves
b.Required reserves
c.Excess reserves
And if you have time...The reserve requirement is 25 percent and $10 million of currency found in a forest is deposited into a bank and checking account compute:
a.The maximum expansion of loans and securities by Bank A.
b.Maximum expansion of the amount of demand deposits in the banking system.

And perhaps...Suppose Random Bank and Trust would cash and reserve deposits totaling $400,000 and demand deposits liabilities of $300,000. If the required reserve ratio is 20%, what is the:
a.Amount of required reserves
b.Amount of excess reserves
c.How much can this bank lend
d.What is the potential expansion throughout the banking system?
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