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suppose first main street bank, second republic bank, and th

Paper help Economics suppose first main street bank, second republic bank, and th

Economics

suppose first main street bank, second republic bank, and th

suppose first main street bank, second republic bank, and third fidelity bank all have zero excess r… Show more suppose first main street bank, second republic bank, and third fidelity bank all have zero excess reserves. The required reserve ratio is 25%. The Federal Reserve buys a government bond worth $1,800,000 from Jack, a client of first main street bank. He deposits the money into his checking account at First Main Street Bank. He deposits the money into his checking account at First Main Street bank. On the assets side of First Main Street Bank’s T-account (before the bank makes any new loans), this [question number 1: increase or decrease?] First Main Street Bank’s [ question number 2: reserve, loans, demand deposits, building and furniture, or net worth?] by [question number 3: $1,350,000, $450,000, $3,600,000, or $1,800,000?]. On the liabilities side of First Main Street Bank’s T-account, this [question number 4: increase or decrease?] First Main Street Bank’s [ question number 5: loans, net worth, reserves, demand deposits, or building and furniture?] by [question number 6: $1,800,000, $3,600,000, $450,000, or $1,350,000?] Because the required reserve ratio is 25%, the $1,800,000 deposit [question number 7: decrease or increase?] First Main Street Bank’s excess reserves by [question number 8: $675,000, $900,000, $1,350,000, or $0?] and [question number 9: increase or decrease?] First Main Street Bank’s required reserves by [ question number 10: $1,800,000, $2,225,000, $900,000, or $450,000?] . • Show less

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