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Balance Sheet Workspace Practice Problems
Problem 1 The US Treasury borrows from the nonbank public by selling them US Treasury securities. The nonbank public pays the Treasury with Federal Reserve Notes.
Problem 2 The US Treasury borrows from commercial banks by selling them US Treasury securities and the US Treasury keeps the borrowed money in their account at the Federal Reserve.
Problem 3 The Federal Reserve buys US Treasuries from the nonbank public and pays using Federal Reserve Notes.
Problem 4 The Federal Reserve sells US Treasuries to a commercial bank.
Problem 5 A commercial bank makes a loan to the nonbank public.
Problem 6 A commercial bank transfers (deposits) excess vault cash to the Federal Reserve.
Consolidated Balance Sheets 15-2 Problems Consolidated Balance Sheet: All Commercial Banks Assets: Initial Data Lower Discount Rate = 1 Bill new.
Chapter 15: The Money Supply Process and the Money Multipliers.
Players in the Money Supply Process Central bank (Federal Reserve System) Banks (depository institutions; financial intermediaries) Depositors (individuals.
Chapter 15. Money Supply Process Fed Balance Sheet Fed and the Monetary Base Deposit Creation Fed Balance Sheet Fed and the Monetary Base Deposit Creation.
Alomar_111_201 Chapter 14: Money Creation. Alomar_111_202 How commercial banks can create checkable deposits and issue loans? By this, money is created!
Money and Banking Lecture 33. Review of the Previous Lecture Central Bank Roles Objectives Inflation Growth Financial System Interest rate and exchange.
Given AssetsLiabilities Reserves $ 500$3500 Deposits Loans $3000 Required Reserve Ratio: 10%
McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 17 The Central Bank Balance Sheet and the Money Supply.
Activity 38 The mechanics of monetary policy. Baseline case Assets Liabilities The FED Treasury Securities Federal Reserve Notes Checkable deposits Loans.
1 Chapter 5 Multiple Deposit Creation and the Money Supply Process.
The Balance Sheet of Commercial Banks Liabilities: Sources of Funds –Checkable Deposits –Non-transactions Deposits –Borrowings discount loans federal funds.
Chapter 16 Multiple Deposit Creation and the Money Supply Process.
1 The role of the Fed is to “take away the punch bowl just as the party gets going”
Understanding Movements in Bank Reserves. Introduction The balance sheet of the Fed shows the movements of reserves in the system Very complicated since.
Macro Chapter 13 Presentation 1. Fractional Reserve System US Banking System Only a portion (fraction) of checkable deposits need to be held as cash in.
Copyright © 2002 Pearson Education, Inc. Slide 17-1 The Money Supply Process.
The amount of money either being borrowed or saved A %, that will need to be converted into a decimal The amount of time in years Simple Interest I =Prt.
Chapter 17. Money Supply Process Fed Balance Sheet Fed and the Monetary Base Deposit Creation The money multiplier Fed Balance Sheet Fed and the Monetary.
ALOMAR_212_61 1- Basic Banking Banks make profits by selling liabilities (of particular combination of liquidity, risk, size, and return) and using the.
Deposit Creation and the Money Supply Process – Part I Chapter 13.
Alomar_111_MCP1 Money Creation Process. Alomar_111_MCP2 A person opens a checking account at bank (A) with (KD100) in cash. This rises the liability of.
How Banks Create Money Please listen to the audio as you work through the slides.
CHAPTER 15 MONETARY POLICY Overview and Tool #1 Monetary Policy Consists of: Deliberate change in the money supply to influence interest rates and.
1 Chapter 15: Multiple Deposit Creation and the Money Supply Process.
1 Money Creation ©2006 South-Western College Publishing.
An Example The US government collects $10M in taxes.
ALOMAR_212_51 Chapter 9 A Banking and the Management of Financial Institutions.
Monetary Policy Control of money supply (M) and interest rates (i)
Principles of Macroeconomics Supplement to Chapter 9 How Banks Create Money.
Chapter 13 Multiple Deposit Creation and the Money Supply Process.
1 The Money Supply Process Chapter Players in the Money Supply Process Central bank (Federal Reserve System) Central bank (Federal Reserve System)
Chapter 17 The Money Supply Process. Players in the Money Supply Process Central bank (Federal Reserve) Banks (depository institutions) Depositors (individuals.
What is money? Creating money The Fed.
Multiple Deposit Expansion AP Economics Coach Knight.
Mr. Mayer AP Macroeconomics Multiple Deposit Expansion.
Chapter 13-4 The Federal Reserve System. The Federal Reserve A central bank is an institution that oversees and regulates the banking system and controls.
Monetary Policy Tools Chapter 16 Section 3Chapter 16 Section 3.
Chapter 15 Multiple Deposit Creation and the Money Supply Process.
Chapter 13 Multiple Deposit Creation and the Money Supply Process 1 Dr. Reyadh Faras.
Chapter 14 The Money Supply Process. Players in the Money Supply Process Central bank (Federal Reserve System) Banks (depository institutions; financial.
Mr. Nunn The Money Supply. Components of the Money Supply Money Supply- The total supply of money in circulation, composed of currency, checking accounts,
Financial Institutions Trivia Newell. Characteristics of private financial institutions include all the following EXCEPT- a) Mint money for loans b) Include.
THE MONEY MULTIPLIER The money multiplier shows us the impact of a change in demand deposits on loans and eventually the money supply. The money multiplier.
Creating Money Through the Banking System Multiple Deposit Creation.
5-1 Lecture 5 Multiple Deposit Creation and the Money Supply Chapter 15 pages and Chapter 16 pages
Unit 7 Macroeconomics: Taxes, Fiscal, and Monetary Policies Chapters 16.3 Economics Mr. Biggs.
Chapter 14 Presentation 1- Monetary Policy. Ways the Fed Controls the Money Supply 1. Open Market Operations (**Most used) 2. Changing the Reserve Ratio.
©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Financial Services Financial Institutions Common Financial Services.
The Money Multiplier and Multiple Deposit Expansion.
Bank’s Balance Sheet Typical items in US Bank’s balance sheet –Checking Deposits (D) $1000 million –Bonds (US gov’t securities) $190 million –Loans $700.
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