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Likurg_2 [28]
4 years ago
6

Suppose that Karen deposits $500 into her checking account at the bank. The reserve requirement for Karen's bank is 12%. Assume

the bank does not want to hold any excess reserves of new deposits. a. Use this information to complete the balance sheet below to show how the bank's assets and liabilities change when Karen deposits the $500. Instructions: Enter your answers as a whole number. A Simple Bank Balance Sheet Assets Liabilities Change in Reserves: $ Change in Deposits: $ Change in Loans: $ b. Why are deposits considered liabilities for a bank? Deposits can be loaned out by the bank. The bank must pay interest on deposits. The bank must hold deposits as reserves at the Federal Reserve. Deposits can be withdrawn at any time.
Business
1 answer:
Jlenok [28]4 years ago
5 0

Answer:

a)Bank deposit increase by $500

b)Bank reserve increase by $60

c)Funds available for loan increase by $440

d) Deposit can be withdrawn anytime

Explanation:

Deposit = $500

Change in reserve = 12%* $500 = $60

Change in deposit = $500

Change in loan = (100-12)%*500 = $440.

Deposit is like a loan given to the bank as the bank uses these money for her transactions . This money can be requested for withdrawal by the depositor at any time, This makes it a type  of liability to the bank

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7 0
3 years ago
In Year 1, the actual budget deficit was $200 billion and the standardized deficit was $150 billion. In Year 2, the actual budge
Sergeeva-Olga [200]

Answer: Option (D) is correct.

Explanation:

From the information given in the question, it was observed that fiscal policy in year 2 is expansionary by comparing it with the fiscal policy in year 1.

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On the other hand, standardized deficit also increases from year 1 to year 2, which is also an indication of expansionary fiscal policy.

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3 years ago
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ivanzaharov [21]

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4 years ago
Segments of business's macroenvironment include all of the following except a. the economic environment. b. the social environme
fgiga [73]

Answer:

d. the natural environment.

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3 years ago
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Not enough information to answer the question, sorry.

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3 years ago
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