HOMEWORK #8 1. Eli receives $200 in cash for his birthday and deposits the money into his
checking account at River Town Bank. a. How does this deposit initially change the T-account of
River Town Bank? How does it affect the money supply? b. If the bank maintains a reserve ratio
of 15%, how will River Town respond to the new deposit? c. If every time River Town makes a
loan, the loan results in a new checkable deposit in a different bank equal to the amount of the
loan, by how much could the money supply in the economy expand in total? 2. The Fed has just
purchased $100 million in Treasury bills from commercial banks. a. How will this affect the T-
accounts for the commercial banks? b. If the public holds a fixed amount of currency (so that all
loans create an equal amount of deposits in the banking system), the minimum reserve ratio is
5%, and banks hold no excess reserves, by how much will deposits in the commercial banks
change? c. By how much will the money supply change? Describe the final changes to the T-
account for commercial banks when the money supply changes by this amount
Solution
Answer:
(a) For River Town bank, this deposit will increase checking deposits (liabilities) by $200 and
increase reserves (assets) by $200. Unless this new deposit is lent out as credit, there will be no
increase in money supply.
(b) Out of $200 deposit, River Town bank will set aside $30 (= $200 x 15%) as required
reserves. Balance amount, $170 (= $(200 - 30)) will be excess reserves. The bank may choose to
keep $170 as its (excess) reserves, or to lend it out as excess reserves.
(c) Total monetary expansion = Initial new deposit / Required reserve ratio = $200 / 0.15 =
$1,333.33.
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
How does water move across a largely hydrophobic plasma membrane.pdf
1. How does water move across a largely hydrophobic plasma membrane?
Solution
The plasma membrane of the cells is semi permeable. The phospholipid arrangement allow only
small uncharged molecules to pass into the cell along the concentration gradient. Now the
membrane being hydrophobic wont allow water to pass in without any assistance. These
membranes have special proteins or channels called as aquaporins which allow the movement of
water into the cel.
