<p>I believe the 2 day period has ended!!!! Does anyone remember what they got for the demand deposits part for frq number 3?!</p>
<p>Lol. That was the only part of the FRQ in which I really guessed. I put $100 ? xD</p>
<p>this is what i had for question 3:
- 80
- 400
- 400
- I think this was about the fed buying 5 million dollars worth of securities maybe!?! but i used the Reserve ratio and found what how much was going into required reserves and how much was going into excess reserves… 5,000,000 X .20= 1,000,000 so 5,000,000-1,000,000= 4,000,000 in excess reserves and multiply that by the monetary multiplier which is 5 (1/.20) and got 20,000,000 i believe… lol sound similar to anyone maybe!?!</p>
<p>Yeah, everything except 2 lol.
Required Reserves = m x Demand Deposits in which m is the required reserve ratio.
Demand deposits = Required Reserves / m
Dd = 20/.2 = $100?
How’d you get $400?</p>
<p>I do not believe that fed securities purchases are subject to required reserves. Thus, all the $5 million should be subject to the multiplier…</p>
<p>well i was thinking 100 or 500 at first but it said through the entire banking system!! I don’t know really how I came to 400 there but at the time I felt confident.</p>
<p>Are you sure a fifth of that 5 million does not have to go to reserves?!</p>
<p>It reminded me of this question, though I do not remember the question on this year’s exam exactly (question 3):
<a href=“Supporting Students from Day One to Exam Day – AP Central | College Board”>Supporting Students from Day One to Exam Day – AP Central | College Board;
<a href=“Supporting Students from Day One to Exam Day – AP Central | College Board”>Supporting Students from Day One to Exam Day – AP Central | College Board;
<a href=“Supporting Students from Day One to Exam Day – AP Central | College Board”>Supporting Students from Day One to Exam Day – AP Central | College Board;
<p>TWSA50 - I’m pretty sure that the banks are still required to keep the 1 million that has to go to the reserves…if not, w t f!</p>
<p>Crap. Ugh. Whatever.</p>
<p>Well, it would be really nice if they posted the question today. The language given would help. My memory from Thursday is not too good.</p>
<p>Uhm…I got</p>
<p>80
500 (initial $100 + $400 loaned out which turn into DD)
400
25 million
part c can’t remember</p>
<p>It’s 25mil because the 5 million go directly to reserves, so there are no REQUIREMENTS to store some away as required reserves. Thus, the bank can loan out all that money.</p>
<p>ok after looking over the purchasing of securities by the fed… If the question said from a bank… then the answer is 25,000,000 if they buy them from the public then it is 20,000,000. Anyone remember the context of the question?!</p>
<p>the fed gives a bank 25 mil</p>
<p>based on your answers user3725… i think you got it all! Damn… I bombed the 2nd question, got half of the 3rd question but i am certain i got all of the 1st question… getting a 5 is slipping unless I do awesome on the MC we will see!</p>
<p>For the 2nd question I got…hope it’s right</p>
<p>1) Depreciate</p>
<p>2) On loanable funds graph, Demand for L.F. moves left, so the interest rate decreases.</p>
<p>3) Since the domestic interest rate has decreased, it may seem to counteract the effect of foreign investors pullling out. Domestic investment may increase, and due to this, economic growth may grow faster or slower depending on the effects of the foreign investor pullout. The economy would grow faster if the decrease in interest rate which would promote domestic investment were of more impact than the pull-out of foreign investors.</p>
<p>It probably said bank. ■■■■. I was pretty sure I got a 5, now it doesn’t seem like it… :/</p>
<p>FRQ is only 1/3 of your grade! Don’t write yourself off yet!</p>
<p>my question is what if you got the answers right but explained it SLIGHTLY wrong (in questions where they didnt even ask you to explain). will they not give you credit??</p>
<p>because on all the scoring guidelines and from what i know about collegeboard, they have certain points they give you for a correct answer. and if i have the correct answer i should get the point. they cant take away a point for my slightly wrong explanations because there ARE NO points to take it away from (a correct explanation wouldnt have gotten me a point, so therefore an incorrect one shouldnt take a point away)? does that make sense anyone??</p>
<p>well i know some questions they give you a point based on your explanation to your answer. So maybe that part was worth 2 points … the answer and the explanation.</p>
<p>If you get only like 2/3 of the FRQs right and like 50/60… i think that is like borderlining a 5 right?</p>