MM-ECON-1103-001 Principles Of Macroeconomics

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MM - ECON - 1103 - 001 Principles of Macroeconomics Online Homework System Assignment Worksheet 3/21/13 - 1:55 AM Name: ____________________________ Class: MM - ECON - 1103 - 001 Principles of Macroeconomics 201301 Class #: ____________________________ Section #: ____________________________ Instructor: Berry Kebede Assignment: Module - Chapter 27 Question 1: (1 point) Suppose that the excess reserves in Toronto Dominion Bank increase by $700. Given a target reserve ratio of 1.0 percent and no cash drain, the maximum change in deposits for the entire banking system would be (a) $17 500.00. (b) $70 000.00. (c) $28 000.00. (d) $700.00. (e) $682.50. Question 2: (1 point) Bank North's Balance Sheet Assets Liabilities Reserves $300 Deposits $2000 Loans $2200 Capital $500 $2500 $2500 TABLE 27 - 1 Refer to Table 27 - 1. If Bank North receives a new deposit of $400, its actual reserve ratio immediately becomes (a) 15% (b) 35% (c) 7%
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