MM-ECON-1103-001 Principles Of Macroeconomics

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MM-ECON-1103-001 Principles of MacroeconomicsOnline Homework SystemAssignment Worksheet3/21/13-1:55 AMName:____________________________Class:MM-ECON-1103-001PrinciplesofMacroeconomics201301Class #:____________________________Section #:____________________________Instructor:BerryKebedeAssignment:Module-Chapter27Question 1: (1 point)Suppose that the excess reserves in Toronto Dominion Bank increase by $700. Given a targetreserve ratio of 1.0 percent and no cash drain, the maximum change in deposits for the entirebanking 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'sBalance SheetAssetsLiabilitiesReserves$300Deposits$2000Loans$2200Capital$500$2500$2500TABLE 27-1Refer to Table 27-1. If Bank North receives a new deposit of $400, its actual reserve ratioimmediately becomes(a)15%(b)35%(c)7%

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University

University of Winnipeg

Course

ECON 1103001

Subject

Economics

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