Question
1. Look in the latest Federal Reserve Bulletin (or on the Internet at the Federal Reserve Board's Web site:www.federalreserve.gov), and find the cur- rent set
1. Look in the latest Federal Reserve Bulletin (or on the Internet at the Federal Reserve Board's Web site:www.federalreserve.gov), and find the cur- rent set of reserve requirements that banks must meet. Then calculate the reserve requirements for banks with the following amounts of transactions deposits. Calculate both the marginal reserve requirement (the additional amount of required reserves per dollar of additional transactions deposits) and the average reserve requirement (re- quired reserves divided by transactions deposits). Consider four banks with the following amounts of transactions deposits:
a. $3.8 million
b. $28.9 million
c. $193.0 million
d. $5.7 billion
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