15. Suppose that StupidBank has $50 million in rate-sensitive liabilities and $40 million in rate sensitive assets. If i

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15 Suppose That Stupidbank Has 50 Million In Rate Sensitive Liabilities And 40 Million In Rate Sensitive Assets If I 1 (190.16 KiB) Viewed 14 times

15. Suppose that StupidBank has $50 million in rate-sensitive liabilities and $40 million in rate sensitive assets. If interest rates increase by 10%, what is the change in bank profits? a. - $10 million b. + $1 million e. - $5 million 16. Assume a simple deposit expansion model with a reserve ratio of 0.2. What is the total change in deposits that results from a $50 million open market sale? a. an increase of $10 million d. an increase of $250 million e. a decrease of b. a decrease of $10 million c. a decrease of $250 million d. - $1 million e. - $4 million 17. The rate that banks charge each other for loans from their Federal Reserve Accounts is known as a. the Federal Funds rate. b. the prime rate. c. the discount rate. 19. The supply of reserves consists of d. the Federal Reserve rate. e. the interesting rate. 18. Which of the following cities does not include a Federal Reserve Bank? a. Atlanta d. Richmond b. Los Angeles e. Boston c. Philadelphia a. required reserves plus excess reserves. b. non-borrowed reserves plus discount loans. c. the monetary base plus demand deposits. d. the monetary base plus excess reserves. e. none of the above.