# The total amount of deposits in the banking system

undefined

Q1: You take \$500 that you held as currency and put it into the banking system. The reserve ratio is

undefined

equal to 20%.[1.5 Marks]

undefined

• Calculate the money multiplier.
• By how much will increase the total amount of deposits in the banking system?
• By how much will increase the money supply?

undefined

undefined

Q2: At the beginning of 2018, a town has 152,000 employed people and 8000 unemployed people.

undefined

The remaining 40,000 people in the town are not in the labor force.[1.5 Marks]

undefined

Based on these numbers:

undefined

• Calculate the town’s unemployment rate:
• Calculate the town’s labor force participation rate:
• Calculate Suppose that 10,000 people decide to join the labor force. Of these 10,000 people 7,800 find jobs. What is the unemployment rate at the end of 2018?

undefined

Q3: Suppose that the T-account for First National Bank is as follows: –[2 Marks]

undefined undefined undefined

 The First National Bank Assets Liabilities Reserves\$100,000 Deposits\$500,000 Loans 400,000

undefinedundefinedundefinedundefinedundefined

A)If the Fed requires banks to hold 5 percent of deposits as reserves, how much in excess reserves does First National Bank now hold?

undefinedundefined

B)Assume that all other banks hold only the required amount of reserves. If First National decides to reduce its reserves to only the required amount, by how much would the economy’s money supply increase?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.