Please respond to the following

Anonymous
timer Asked: Jan 23rd, 2016

Question description


  • Go to http://sffed-education.org/chairman. Use the Learn More button and review the tight  (contractionary) and easy (expansionary) tools of the Fed as well as the use of each. Briefly examine the Economic Dictionary and the Policy in Depth features.
  • Now play the game! You are the Fed Chairperson! You begin with 16 quarters, 4 years, then your job is up for review. You begin with rates at 4.5, inflation at  2.14% and unemployment at 4.75%.
  • Make decisions on interest rates for the 16 quarters. Summarize the changes you chose and explain your results. Do you still have a job? Why or why not?
  • Complete the following from the textbook:

    • Chapter 4: E2

      2. As the executive of a bank or thrift institution you are faced with

      an intense seasonal demand for loans. Assuming that your loanable

      funds are inadequate to take care of the demand, how might your

      Reserve Bank help you with this problem?

    • Chapter 5: P1

      P1 1. A new bank has vault cash of $1 million and $5 million in deposits

      held at its Federal Reserve District Bank.

      a. If the required reserves ratio is 8 percent, what dollar amount

      of deposits can the bank have?

      b. If the bank holds $65 million in deposits and currently holds

      bank reserves such that excess reserves are zero, what

      required reserves ratio is implied?

    • CH 5: P6

      6. Assume that banks must hold a 2 percent reserve percentage

      against transaction account balances up to and including $40 million.

      For transaction accounts above $40 million, the required reserve

      percentage is 8 percent. Also assume that Dell National Bank has

      transaction account balances of $200 million.

      a. Calculate the dollar amount of required reserves that Dell

      National Bank must hold.

      b. What percentage of Dell’s total transaction account balance

      must be held in the form of required reserves?


Tutor Answer

(Top Tutor) Studypool Tutor
School: UC Berkeley
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors