Economics!! HELP!! - GoFuckYourself.com

xxweekxx · 05-05-2006, 08:19 AM

Someone help me do this plz.. i'll pay too

(1) (a) The commercial banking system has $720 billion in demand deposit liabilities and $70 billion in reserves. The legal reserve ratio is 9%. What is the maximum expansion in the money supply that can take place? Show your calculations!

(b) Assume the commercial banking system has $800 billion in checkable deposits and $68 billion in reserves. The legal reserve ratio is 8%. To what level would the reserve ratio have to be changed to "wipe out" the money- creating ability of the banking system?

(2) Assume the commercial banking system has $800 billion in checkable deposits and $64 billion in reserves. The legal reserve ratio is 8%.Then the central bank buys $4 billion worth of government securities. (Give numerical answers!)

(a) What will be the immediate effect on the deposit liabilities of the commercial banking system?

(b) What will be the immediate effect on the reserves of the commercial banking system?

(c) What will be the immediate effect on the excess reserves of the commercial banking system?

(d) What is the maximum (total) expansion in the money supply that can occur as a result of the central bank's action?

(3) Assume that the General Motors Acceptance Corporation (GMAC) enters the ?open market? and buys $2 billion worth of government securities, the ultimate seller being TIAA, the pension fund for professors. Assume that Citibank is GMAC?s bank and Chase is TIAA?s bank. Explain carefully, using numbers, what this will do to:

(a) The deposit liabilities of Citibank, Chase and the whole banking system.

(b) The reserves of Citibank, Chase and the whole banking system.

(c) The excess reserves of Citibank, Chase and the whole banking system.

(d) The money supply of the country.

xxweekxx · 05-05-2006, 08:31 AM

nobody can answer this!!

SomeCreep · 05-05-2006, 08:33 AM

huh, words? School? No.

xxweekxx · 05-05-2006, 04:07 PM

Come On!

Libertine · 05-05-2006, 04:08 PM

Do your own bloody homework

BigBen · 05-05-2006, 04:10 PM

http://answers.google.com/answers/

Elli · 05-05-2006, 04:16 PM

No playtime until you're done the dishes and your homework!

studiocritic · 05-05-2006, 04:30 PM

Quote:

Originally Posted by xxweekxx

(1) (a) The commercial banking system has $720 billion in demand deposit liabilities and $70 billion in reserves. The legal reserve ratio is 9%. What is the maximum expansion in the money supply that can take place? Show your calculations!

70/x = 9/100

9x = 7000

x = 777.77777777777777777777777777778

$777,777,777,777.77 - 720,000,000,000

= $57,777,777,777.77

studiocritic · 05-05-2006, 04:31 PM

Quote:

Originally Posted by xxweekxx

(b) Assume the commercial banking system has $800 billion in checkable deposits and $68 billion in reserves. The legal reserve ratio is 8%. To what level would the reserve ratio have to be changed to "wipe out" the money- creating ability of the banking system?

800*.08 = 64

$64 billion (or a -$4B change)

E$_manager · 05-05-2006, 05:18 PM

impossible

mayon · 05-05-2006, 05:59 PM

call the FEDS! this is interesting -lol

xNetworx · 05-05-2006, 06:19 PM

I have a BS in Econ but I'm not going to figure that shit out... its been 4 years since I last touched that crap

woj · 05-05-2006, 06:45 PM

heh, asking for homework help on gfy, how pathetic!

xxweekxx · 05-05-2006, 08:33 PM

Nobody!!!!!!

RogerV2 · 05-05-2006, 10:20 PM

The Demon · 05-05-2006, 10:31 PM

I'm a senior with applied economics as a major, I could probably help you out tomorrow, the problems don't seem difficult.

05-05-2006, 08:19 AM	#1
xxweekxx Confirmed User Join Date: Oct 2002 Posts: 6,780	Economics!! HELP!! Someone help me do this plz.. i'll pay too (1) (a) The commercial banking system has $720 billion in demand deposit liabilities and $70 billion in reserves. The legal reserve ratio is 9%. What is the maximum expansion in the money supply that can take place? Show your calculations! (b) Assume the commercial banking system has $800 billion in checkable deposits and $68 billion in reserves. The legal reserve ratio is 8%. To what level would the reserve ratio have to be changed to "wipe out" the money- creating ability of the banking system? (2) Assume the commercial banking system has $800 billion in checkable deposits and $64 billion in reserves. The legal reserve ratio is 8%.Then the central bank buys $4 billion worth of government securities. (Give numerical answers!) (a) What will be the immediate effect on the deposit liabilities of the commercial banking system? (b) What will be the immediate effect on the reserves of the commercial banking system? (c) What will be the immediate effect on the excess reserves of the commercial banking system? (d) What is the maximum (total) expansion in the money supply that can occur as a result of the central bank's action? (3) Assume that the General Motors Acceptance Corporation (GMAC) enters the ?open market? and buys $2 billion worth of government securities, the ultimate seller being TIAA, the pension fund for professors. Assume that Citibank is GMAC?s bank and Chase is TIAA?s bank. Explain carefully, using numbers, what this will do to: (a) The deposit liabilities of Citibank, Chase and the whole banking system. (b) The reserves of Citibank, Chase and the whole banking system. (c) The excess reserves of Citibank, Chase and the whole banking system. (d) The money supply of the country. __________________ _________________ I am the best

05-05-2006, 08:31 AM	#2
xxweekxx Confirmed User Join Date: Oct 2002 Posts: 6,780	nobody can answer this!! __________________ _________________ I am the best

05-05-2006, 08:33 AM	#3
SomeCreep :glugglug Join Date: Mar 2003 Location: Where the Wild Things Are Posts: 26,118	huh, words? School? No. __________________ Webair Hosting I use and recommend Webair for hosting.

05-05-2006, 04:07 PM	#4
xxweekxx Confirmed User Join Date: Oct 2002 Posts: 6,780	Come On! __________________ _________________ I am the best

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Libertine sex dwarf Join Date: May 2002 Posts: 17,860	Do your own bloody homework __________________ /(bb\|[^b]{2})/

05-05-2006, 04:10 PM	#6
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05-05-2006, 05:59 PM	#11
mayon Confirmed User Join Date: Jul 2005 Posts: 196	call the FEDS! this is interesting -lol __________________ icq 250976254 \| featuring High Def sites that convert!

05-05-2006, 06:19 PM	#12
xNetworx So Fucking What Industry Role: Join Date: Jan 2004 Location: Whore Island Posts: 14,445	I have a BS in Econ but I'm not going to figure that shit out... its been 4 years since I last touched that crap

05-05-2006, 06:45 PM	#13
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	heh, asking for homework help on gfy, how pathetic! __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

05-05-2006, 08:33 PM	#14
xxweekxx Confirmed User Join Date: Oct 2002 Posts: 6,780	Nobody!!!!!! __________________ _________________ I am the best

05-05-2006, 10:20 PM	#15
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05-05-2006, 10:31 PM	#16
The Demon Confirmed User Industry Role: Join Date: Apr 2003 Posts: 7,336	I'm a senior with applied economics as a major, I could probably help you out tomorrow, the problems don't seem difficult. __________________ Greed is Good