MATH IT GRAPH IT WRITE IT On a piece of notebook paper, please use the following scenarios to answer the questions: Bank

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Math It Graph It Write It On A Piece Of Notebook Paper Please Use The Following Scenarios To Answer The Questions Bank 1 (29.18 KiB) Viewed 21 times

MATH IT GRAPH IT WRITE IT On a piece of notebook paper, please use the following scenarios to answer the questions: Banking Question 1 A U.S. bank has $100,000.00 in deposits. This bank operates in a fractional reserve system where the FRB mandates a 10% required reserve. This bank has loaned out all excess reserves and is currently at the minimum requirement. Show all work. a) Construct a simple balance sheet for this bank. b) At the current required reserve ratio, how much do this bank's deposits impact the total money supply through the money multiplier? c) At a velocity of 2, how much does this bank's total creation of money impact nominal GDP? d) Let's say the FRB changes the reserve ratio to 20%. Repeat a, b, and c. e) Calculate and describe the possible outcomes from such a change. Create an idealized AD/AS model starting with an inflationary gap, and show the possible outcome.