I NEED THIS ON EXCEL SPREADSHEET SIR THANK YOU THE NUMBER: THE SHEET HOME WORK WEEK 2
Chapter 4 Exercise 2
2. As the head of a thrift bank you will only have so much money on hand. It is very important to make sure that it is possible to have access to the funds that you need. When something like interest rates being low happens, it is important to make sure that there is a process of allowing supply to be there. What that means is that when there is a demand for money sometimes there is a need to make sure that the supply is available to be able to keep up with the demand. What that means is that there needs to be a borrowing from a central bank. It would be the necessary to make sure that there was going to be the help of a central bank to meet the needs. That means that the owner of the bank would need to reach out to ensure that there was going to be enough money.
Chapter 5 P1, P6
Initial Deposit 1,000,0001/9/17
Cash (1,000,000*.20=200,000)200,000 Cash
Accounts Receivable (AR)
Accounts Payable (AP)
Common Stock and Additional Paid in Capital (APIC)
Total Shareholders’ Equity
To calculate the initial amount of cash it is important to figure 20% of 1000,000=1000,000*.2=200,000
P6. Assume a financial system has a monetary base of $25 million. The required reserves ratio is 1- percent, and there are no leakages in the system.
a.What is the size of the money multiplier? 1/2,500,000=.0000004
b.What will be in the system’s money supply? 25,000,000*.10=2,500,000 is the supply
Adrian, Tobias, and Hyun Song Shin. “Financial intermediary balance sheet management.” A Flow-of-Funds Perspective on the Financial Crisis. Palgrave Macmillan UK, 2014. 177-202.
Breuer, Peter. “Measuring off-balance-sheet leverage.” Journal of banking & finance 26.2 (2002): 223-242.