Financial Institutions & Markets

profileCaiden
 (Not rated)
 (Not rated)
Chat

1. A new bank has vault cash of $1 million and $5 million in deposits held at its Federal Reserve District Bank. A) If the required reserves ratio is 8 percent, what dollar amount of deposits can the bank have? B) IF the bank holds $65 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied?

    • 9 years ago
    perfect solution
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      9.xlsx