# Thread: “Money and Banking (MGT411)” assignment no 2 20/01/2011

1. ## “Money and Banking (MGT411)” assignment no 2 20/01/2011

Assignment
Question No 01
Part (A)
Calculate the impact of an increase in desired currency holdings on the money multiplier from
10% to 15% of deposits when the reserve requirement is 10 percent of deposits, and banks’
desired excess reserves are 04 % of deposits.
Assumption:
If the general public held currency Rs. 109 millions and deposit are Rs. 99 millions.
Part (B)
What will be difference in deposits by following a Rs. 3 billion Open Market Purchase
assuming a 5% reserve requirement
Assumptions:
1 No excess reserves are held.
2 There are no changes in the amount of currency held by the public
Question No
A commercial bank has following data:
Total assets valued Rs. 1,000,000
Item Assets Liabilities
Interest rate sensitive 35% 45%
Interest rate non‐sensitive 65% 55%
Initial interest rate 08 % 05%
Interest rate increase 3% both in assets and liability
Required:
What will be the increase / decrease in the amount of net‐profit(interest) due to the interest rate

2. hi all the fellow hope you all are fine plz send me help material mgt411 money and banking
regard:
faiza shoukat help me

3. You want the solution of assignment or you want the helping material?

4. find the solution in the attachment files
mgt411 sol 2 2.jpgmgt411 sol 2.JPG

5. hi,
actually mein yeh jana chahti hun first part mein kaun sa formula use hoga .mgt411 assignment

6. ## in my view i think this formula be use

M = [U]{c/d}+1 /{c/d}+Rd+{ER/D}*MB

7. ab itna tu app ko pata hi hona chaheya.

8. Hahahhahaha.................

9. ## mgt411

i have solved my all question of mgt411 assignment-2 today at 3 am till night.
you also try your questios. ha ha ha

10. jonsa b lagay laga do dear