A bank has $110 million in deposits and holds $10 million in vault cash. a. If the

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A bank has $110 million in deposits and holds $10 million in vault cash.

a. If the required reserves ratio is 10 percent, what dollar amount of reserves must be held at the Federal Reserve Bank?

b. How would your answer in Part (a) change if the required reserves ratio was increased to 12 percent?

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Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

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Question Posted: Apr 13, 2012 06:55 AM

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A bank has $110 million in deposits and holds $10 million in vault cash. a. If the

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Introduction to Finance Markets Investments and Financial Management

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