Assignment 3 Questions: Week 10 to Week 13: – [5 Marks]<\/p>\n
Q1: You take $1000 that you held as currency and put it into the banking system. The <\/p>\n
reserve ratio is equal to 10%. [1.5 Marks]<\/p>\n
Calculate the money multiplier. <\/p>\n
By how much will increase the total amount of deposits in the banking system? <\/p>\n
By how much will increase the money supply? <\/p>\n
Q2. (Labor Force, Labor Participation Rate and Unemployment Rate). [1.5 Marks]<\/p>\n
In Year 1, country A has a labor force of 100, of whom 90 are employed. The remaining 50 people in the country are not in the labor force. <\/p>\n
Calculate the employment ratio, the labor participation rate and unemployment rate. <\/p>\n
Over the course of the year, 10% of the employed become unemployed, while 20% of the unemployed become employed; 5% of the employed leave the labor force, while 4% of those not in the labor force become employed. The population remains unchanged. <\/p>\n
Fill in the following table. (Hint: It might be helpful to draw the flow diagram before answering.) <\/p>\n
In Year 1<\/p>\n
In Year 2<\/p>\n
Population <\/p>\n
150<\/p>\n
150<\/p>\n
Labor Force <\/p>\n
100<\/p>\n
Employed <\/p>\n
Unemployed<\/p>\n
Calculate the employment ratio, the labor participation rate and unemployment rate. (Fractions suffice.)<\/p>\n
Q3. Assume that a bank has on its asset side reserves of 1000 and loans of 6000 and on <\/p>\n
its liability side deposits of 7000. Assume that the required reserve ratio is 10 <\/p>\n
percent. [2 Marks]<\/p>\n
1) How much is the bank required to hold as reserves given its deposits of 7000?<\/p>\n
2) How much are its excess reserves?<\/p>\n
3) By how much can the bank increase its loans?<\/p>\n
Answer:<\/p>\n","protected":false},"excerpt":{"rendered":"
Assignment 3 Questions: Week 10 to Week 13: – [5 Marks] Q1: You take $1000 that you held as currency and put it into the banking system. The reserve ratio is equal to 10%. [1.5 Marks] Calculate the money multiplier. By how much will increase the total amount of deposits in the banking system? By […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78685","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78685"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78685\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}