Macro 2012 FRQ #2- Bank Balance Sheets

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Download and complete the FRQ before you watch the video. Released FRQs are available for free on the College Board's website:
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4 окт 2024

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Комментарии : 29

@bearr8390 2 года назад

This man is an absolute beast. Holy...

@mae44436 5 лет назад

why do economic teachers always talk so fast...

@kevinherm5458 4 года назад

Its an efficient allocation of resources

@yangzhang8171 Год назад

Thank you so much for the video. I have a question: When you calculate the reserve ratio, do you include the Certificate of Deposit in the denominator or not? In other words, is CD included in the bank's deposit? Thank you.

@HanTran-cx5em 5 лет назад

Thank you so much! I'm struggling on this question and found your video!

@AlejandrooCampos 8 лет назад

How is the excess reserve $500? Did you do it by taking 10% of $5000 like you did with $950000?

@Theunknowns__ 8 лет назад

+Alejandro Campos i was wondering this as well. im breaking my head for this. MR CLIFFORD HELP

@musthaveV8 7 лет назад

he had to make it equal to his liabilities, otherwise he would have put $9000. always take from your excess reserves first.

@ivanwong6813 6 лет назад

I think this is what he did 95,000-9,500=$85,500 which would be the total "excess reserves" but $85,000 is already in loans so that leaves $500 in the excess. The loans come from the excess reserves so what you're left with is the $500 in the excess and the loans is $85,000

@marcusshera1232 9 лет назад

Couldn't the bank also call in some of their loans to cover the reserve rate?

@Theunknowns__ 8 лет назад

could you elaborate on the excess reserve? why is it 500? and what does excess reserve even means?? HELP PLS!

@bryanherrera6440 8 лет назад

+Linh N. it's really tricky ,but simple at the same time. Excess reserve is just back up money. It can be reserve ,or it can be loan out. When the individual withdrew $5,000, the money came from ONLY from the excess reserve, not a single dollar came out from the require reserve. Because the bank had a new demand deposit balance of $95,000, 10% of that which is $9,500 was require to be reserve. Now remember, not a single dollar came out from the reserve requirement which was $10,000. Because it is only require to hold $9,500 in the reserve, it move the other $500 to the excess ,or it could have loan it out. hope it help!