Suppose that the banking system currently has no excess rese…

Suppose that the banking system currently has no excess reserves and that a bank receives a deposit into a checking account of $50,000 in currency. Using the excess reserve (simple deposit) multiplier, if the required reserve ratio is 0.1, what is the maximum amount that the banking system can lend out?

10-point question Evaluate both of the following statements…

10-point question Evaluate both of the following statements as true or false and explain your reasoning.     a. “If banks increase their excess reserves, the monetary base will increase. If the monetary base increases, the          money supply will increase. Therefore, an increase in excess reserves increases the money supply”.     b. The most important factor accounting for changes in the money supply in the long run is changes in bank         lending policies that affect the money multiplier.

16-point question 5. Given the following yield information o…

16-point question 5. Given the following yield information on municipal bonds issued by the state of North Dakota: 1-year note yield = 2.35% 2-year note yield = 2.75% 3-year note yield = 3.29% 4-year note yield = 3.95% 5-year note yield = 4.33% Given constant premiums of 0, .16%, .21%, .24%, .26%, and .265%. a) Calculate the expected expectations yields for a (3,2) path. b) Calculate the expected market yields for a (1,4) path. c) Determine the expected preferred habitat yield for a 3-year note purchased at the beginning of year 2. d) Determine the expected expectations yield on a 5-year note purchased today.