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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

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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