# strayer fin100 week 3 homework

September 29, 2018

Principles of Finance
Homework Assignment – Week 3
Chapter 5: P1 and P6
P1
Assume that Banc One receives a primary
deposit of \$1 million. The bank must
keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilities
for Bank One immediately after the deposit is received.

P6
Assume a financial system has a monetary
base of \$25 million. The required reserves
ratio is 10 percent, and there are no leakages in the system.
a.
What is the size of the money multiplier?
b.
What will be the system’s money supply?
P9
Assume that last year the Australian dollar
was trading at \$.5527, the Mexican peso at \$.1102, and the United Kingdom
(British) pound was worth \$1.4233. By
this year the U.S. dollar value of an Australian dollar was \$.7056, the Mexican
peso was \$.0867, and the British pound was \$1.8203. Calculate the percentage appreciation or
depreciation of each of these three currencies between last year and this year.

Get a 30 % discount on an order above \$ 100
Use the following coupon code:
RESEARCH
Positive SSL