2.Refer to the previous question.This means question 1 that I just submitted.What would be the cost for this bank to comply with its required reserves if the bank decides to borrow from the Fed at a discount rate of 0.75%Can you now explain why excess reserves serve as insurance against deposit outflows?

This is question 1 with solution from here you use this information to answer question 2.1.Suppose a bank currently has a $150,000 in deposits and $15,000 in reserves.The required reserve ratio is 10%(so this bank holds no excess reserves).If there is a deposit outflow(i,e.,someone withdraws funds from her account)for $5,000 would this bank still comply with the Fed's requirement of keeping 10% of its deposits in the form of reserves?What would be the cost for this bank to comply with this regulation if the bank decides to borrow from another bank to eliminate its reserve shortage?Assume a federal funds rate of 0.25% the answer is

Solution (a): If there is a deposit outflow for $5,000, the bank will have a reserve shortfall of $4,500.

Solution (b): Cost to comply with this regulation if the bank decides to borrow from another bank to eliminate its reserve shortage is $11.25 (0.25% of $4,500)