I need a 100-word reply to each of the following 8 post. (800 words total). I do conduct a plagiarism check before I make the final payment (been burned in the past) so please make it original (most of you are great and I have been totally satisfied). These post are from a finance course: Forum #1 If Bank A has an increase in deposits of $100M and their required reserves is 10%, then the must hold $10M in required reserves.  This means that there is $90M in excess reserves that is available to loan, assuming that they want to use all of it for loans instead of making investments.  Bank A Assets Liabilities Required reserves                          +$10M Checkable deposits                         $100M Excess reserves                                 $90M If Bank A loans out the entire $90M, then another bank will receive the funds as checkable deposits and also be required to hold 10% of the amount in reserves.  At this point, we’ll call it Bank B, they will be required to hold $9M in required reserves and have $81M in excess reserves available to loan.  Bank B Assets Liabilities Required reserves                             +$9M Checkable deposits                          $90M Excess reserves                              +$81M Then let’s say that Bank B loans out all $81M and this amount gets deposited into Bank C.  Bank C is now required to hold $8.1M in required reserves and has $72.9M in excess reserves, which it can also loan out.  Bank C Assets Liabilities Required reserves                          +$8.1M Checkable deposits                        +$81M Excess reserves                              $72.9M At this point, the money supply has grown by $271M ($100M Bank A + $90M Bank B + $81M Bank C).  The process can repeat, each time increasing the money supply and is called multiple deposit creation.  The textbook provides a definition, “Part of the money supply process in which an increase in bank reserves results in rounds of bank loans and creation of checkable deposits and an increase in the money supply that is a multiple of the initial increase in reserves” (Hubbard, 2013, p. 427).  The amount of the money supply has grown due to the original source that Bank A has received the $100M from.  Bank A has helped to increase the money supply by loaning the $90M it had in excess reserves.  Therefore, Bank A’s contribution was the $90M. In order to discover how much money the banking system as a whole can create, the simple deposit multiplier can be used.  This is “[t]he ratio of the amount of deposits created by banks to the amount of new reserves” (Hubbard, 2013, p. 427).  This can calculation can be used for this scenario because the simple deposit multiplier assumes that no banks are going to hold any excess reserves beyond the required amount of 10%.  The initial amount of increase in deposits was $100M and of that amount $10M was required in reserves.  Therefore, the simple deposit multiplier is $100M/$10M and is equal to .

1. I need a 100-word reply to each of the following 8 post. (800
words total). I do conduct a plagiarism check before I make the
final payment (been burned in the past) so please make it
original (most of you are great and I have been totally
satisfied).
These post are from a finance course:
Forum #1
If Bank A has an increase in deposits of $100M and their
required reserves is 10%, then the must hold $10M in required
reserves. This means that there is $90M in excess reserves that
is available to loan, assuming that they want to use all of it for
loans instead of making investments.
Bank A
Assets
Liabilities
Required reserves +$10M
Checkable deposits $100M
Excess reserves $90M
If Bank A loans out the entire $90M, then another bank will
receive the funds as checkable deposits and also be required to
hold 10% of the amount in reserves. At this point, we’ll call it
Bank B, they will be required to hold $9M in required reserves
and have $81M in excess reserves available to loan.
Bank B
Assets
Liabilities
Required reserves +$9M
Checkable deposits $90M
Excess reserves +$81M

2. Then let’s say that Bank B loans out all $81M and this amount
gets deposited into Bank C. Bank C is now required to hold
$8.1M in required reserves and has $72.9M in excess reserves,
which it can also loan out.
Bank C
Assets
Liabilities
Required reserves +$8.1M
Checkable deposits +$81M
Excess reserves $72.9M
At this point, the money supply has grown by $271M ($100M
Bank A + $90M Bank B + $81M Bank C).
The process can repeat, each time increasing the money supply
and is called multiple deposit creation. The textbook provides a
definition, “Part of the money supply process in which an
increase in bank reserves results in rounds of bank loans and
creation of checkable deposits and an increase in the money
supply that is a multiple of the initial increase in reserves”
(Hubbard, 2013, p. 427). The amount of the money supply has
grown due to the original source that Bank A has received the
$100M from. Bank A has helped to increase the money supply
by loaning the $90M it had in excess reserves. Therefore, Bank
A’s contribution was the $90M.
In order to discover how much money the banking system as a
whole can create, the simple deposit multiplier can be used.
This is “[t]he ratio of the amount of deposits created by banks
to the amount of new reserves” (Hubbard, 2013, p. 427). This
can calculation can be used for this scenario because the simple
deposit multiplier assumes that no banks are going to hold any
excess reserves beyond the required amount of 10%. The initial
amount of increase in deposits was $100M and of that amount
$10M was required in reserves. Therefore, the simple deposit
multiplier is $100M/$10M and is equal to 10. The banking
system as a whole should end up with $1B in this case, $100M
is 10% of $1B ($100M/10% = $1B). The Fed often originates

3. the growth of the money supply in this manner by making open
market purchases.
Reference
Hubbard, R. (2013).
Money, Banking, and the Financial System
(2nd ed.). New York, N.Y.: Pearson. ISBN: 9780132994910
Forum #2
With this week’s discussion, Bank A has increased deposit of
$100M and a reserve requirement of 10%. This means that
Bank A must hold $10M ($100M * 0.1) for the reserve
requirement and can use the other $90M ($100M - $10M), or
excess reserves, for loan issuance.
Now in terms of money created by the whole banking
system we must find the find the simple deposit multiplier
which is “the ratio of the amount of deposits created by banks
to the amount of new reserves”, (Hubbard & O’Brien, 2014).
This can be displayed as such
Deposits / Required reserve = Simple
deposit multiplier
$100M / $10M = 10
With this in mind, we know that based on the prompt, other
banks are not holding any reserves beyond the required 10%.
So we would take the initial increase in deposits and multiply it
by the simple deposit multiplier (SDM), as such:
Initial Deposit * SDM = total money
created
$100M * 10 = $1B
So the initial deposit can created up to $1B of money for the
banking system as a whole.
References:
Hubbard, R. & O’Brien, A. (2014).
Money, Banking, and the Financial System, 2

4. nd
Ed.
Upper Saddle River, NJ: Pearson Education, Inc.
Forum #3
Monetary goals, in regards to policies and the economy itself,
typically revolve around the general well-being of the economy.
What influences the state of the economy? Excellent question,
I'll explain. In a brief summation, the economy is affected by
steady employment, steady interests, and unfaltering production
and financial markets (2013). So, what are the goals the Fed
places in order to conjure these effects?
According to R. Glenn Hubbard, the goals are: "price stability,
high employment, economic growth, stability of financial
markets and institutions, interest rate stability, and foreign-
exchange market stability" (2013, p 228). After the crisis of
'07-'09, the Fed changed a few things. They started buying and
selling more securities than the traditional T-bills, and this
helped stabilize long-term interest rates and supported the credit
flow in the financial system. The Fed also increased the interest
rates on reserves held by banks; this allowed more reserves to
be held by banks, therefore increasing the money supply. The
Fed also works with the FOMC to ensure the real federal funds
rate is equal to the target inflation. Another way of looking at it
is that if the real GDP is lower than the targeted or expected
GDP, the FOMC will raise the targeted federal funds rate.
Reference
Hubbard, R. (2013).
Money, Banking, and the Financial System
(2nd ed.). New York, N.Y.: Pearson.

5. Forum #4
The Fed has several goals that are intended to help the economy
including “price stability, high employment, economic growth,
stability of financial markets and institutions, interest rate
stability, and foreign-exchange market stability” (Hubbard,
2013, p. 448). However, by working at two of those goals,
maximum employment and price stability, generally all of the
other goals will be met. This dual mandate is accomplished by
using some monetary policy tools.
One of the policy tools used is using the open market to
complete the purchase and sales of securities. Securities are
purchased by the fed to cause an increase or reduction in the
money supply, which influences bank reserves and interest
rates.
Another monetary policy tool is the discount policy. The
discount rate, including the terms, is set in order to effect the
rate at which loans are made to banks.
Reserve requirements are also used as a monetary policy tool.
The percentage of required reserves is set in order to influence
the amount that must be held. This will affect the money supply
by determining the money multiplier.
The FOMC sets a target for the federal funds rate, which is the
amount of interest that banks charge one another on loans that
are short-term. This rate is effected by the demand and supply
for reserves. The fed pays interest on reserves held and this
interest rates sets the floor for the federal funds rate. “As the
federal funds rate increases, the opportunity cost to banks
holding excess reserves increase because the return they could
earn from lending out those reserves goes up” (Hubbard, 2013,
p. 453). The fed conducts operations on the open market to try
to hit the federal funds rate target.
To help with the recession, the federal funds rate target was
lowered and treasury securities were purchased. In addition, the
discount rate was also lowered. The purchase increased the
supply of reserves and decreased the federal funds rate. This

6. had the effect of increasing the equilibrium level of reserves.
When the Fed wants to slow the economy, they also have done
the opposite. They increase the federal funds target and raise
the discount rate. They sell securities on the open market to
decrease the supply of reserves. This has the effect of
increasing the equilibrium federal funds rate.
The Fed has also used discount policy in order to aid in
recovery from the recession. Several temporary lending
facilities were opened in order to help other depository
institutions other than just members of the Federal Reserve
System. This was to help bail out many financial institutions.
I do agree with the Fed intervening in difficult economic times.
The Fed is there to help stabilize the economy for the good of
citizens. Without this intervention, the state of our economy
would be much worse off, in my opinion. Having this type of
system helps keep the country running more efficiently than it
would otherwise. I do not think that they economy would
eventually even out on its own.
Reference
Hubbard, R. (2013).
Money, Banking, and the Financial System
(2nd ed.). New York, N.Y.: Pearson. ISBN: 9780132994910
Forum #5
One type of international banking office is called an Edge Act
Bank. These types of banks were started in 1919 as part of an
amendment to Part 25 of the Federal Reserve Act. The purpose
of an Edge Act Bank is to "allow U.S. banks to be competitive
with the services foreign banks could supply their customers."
(Eun & Resnick 2015) This service allows MNCs to conduct
financial transactions associated with their foreign business
without having to go overseas. These services include "accept
foreign deposits, extend trade credit, finance foreign projects
abroad, trade foreign currencies, and engage in investment

7. banking activities with U.S. citizens involving foreign
securities." (Eun & Resnick 2015).
These types of banks don't compete with domestic commercial
banks and as of 1979, "the Federal Reserve has permitted
interstate banking by Edge Act banks". (Eun & Resnick 2015)
This type of international bank helps US MNCs be as
competitive as possible financially in their global business.
Reference:
Eun, C. S., & Resnick, B. G. (2015). International financial
management (7th ed.). New York: McGraw-Hill Irwin. ISBN:
9780077861605
Forum #6
The type of international banking office i choose to focus on is
Offshore Banking Centers and services it provides such as
"accepting deposits and granting loans in currencies other than
the currency of the host country."Eun, C. S., & Resnick, B. G.
(2015) The Offshore Banking Centers secure global business
through the provision of trust company administration,
specialized services, such as being an intermediary in shipping,
corporate consultancy, structured financial transactions,
insurance and mutual fund administration.
Forum #7
International Bonds
A firm desiring to raise capital by issuing Eurobonds will first
contact an investment banker and inquire about them serving as
lead administrator of a backing cartel that will usher the debt
notes to market. The lead administrator will usually ask other
bankers to form a managing group to help discuss terms with

8. the borrower, determine market conditions, and manage the
issue.
What should a borrower consider before issuing dual-currency
bonds?
“Dual currency bonds are attractive to MNCs seeking financing
in order to establish or expand operations in the country issuing
the payoff at maturity currency. During the early years, the
coupon payments can be made by the parent firm in the issuing
currency. At maturity, the MNC anticipates the principal to be
repaid from profits earned by the subsidiary, which is the
currency that will be used at repayment. The MNC may suffer
an exchange rate loss if the subsidiary is unable to repay the
principal and the payoff currency has appreciated relative to the
issuing currency.” Eun, C. S., & Resnick, B. G. (2015).
What should an investor consider before investing in dual-
currency bonds?
"The maturity amount of the principal at repayment is set at
inception; commonly, the amount allows for some appreciation
in the exchange rate of the stronger currency. From the
investor’s viewpoint, a dual currency bond comprises a long-
term forward contract. If the second currency appreciates over
the life of the bond, the principal payout at maturity will be
worth more than a return of principal in the issuing currency.
However, if the payoff currency depreciates, the investor will
suffer an exchange rate loss.” Eun, C. S., & Resnick, B. G.
(2015).
Consequently, both the borrower and the investor are exposed to
exchange rate uncertainty from a dual currency bond.
Reference:
Eun, C. S., & Resnick, B. G. (2015). International financial
management (7th ed.). New York: McGraw-Hill Irwin. ISBN:
9780077861605

9. Forum #8
Discuss the process of bringing a new international bond issue
to market.
International bonds are not a new concept. They have been used
by different countries to raise capital for specific projects, to
finance infrastructure or as a way to fund a war effort.
The process of bringing a bond issue to market is somewhat
complex and requires the involvement of many. First of all, the
borrower will determine the amount needed and then will work
to engage the services of an investment bank. The investment
bank will serve as the lead manager and work with an
organization that underwrites the bond. The investment bank
that serves as the lead investor works to establish the terms with
the borrower determines market conditions and manages the
overall issuance of the bonds. Eventually the bond is brought to
market and is offered to members of the public.
What should a borrower consider before issuing dual-currency
bonds?
Dual-currency bonds have inherent risks because they are issued
in one currency and paid in another. Borrowers who are
considering the issuance of a dual-currency bond need to
consider the potential for a significant change in the exchange
rate. In these situations, the exchange rate could have a
positive or negative affect on the amount the borrower
receives. For instance, if the currency the bond was issued in
increases, the borrower benefits; if the value of the issue
currency decreases, the borrower could suffer an overall loss.
What should an investor consider before investing in dual-
currency bonds?
Investors are not immune to the risk associated with a dual-
currency bond. They also have the potential to gain or lose as a
result of a change in the FX rate. In this case, if the value of
the currency the bond is issued in decreases the investor stands
to gain as a result of the decrease; but if the value of the issue
currency increases, the investor loses out because the payout

10. currency has a lesser value than when weighed against the issue
currency.