Question
A bank has the following assets: Reserves of $15 million; Loans of $150 million; and Securities of $50 million. Their liabilities include: Deposits of $150
A bank has the following assets: Reserves of $15 million; Loans of $150 million; and Securities of $50 million. Their liabilities include: Deposits of $150 million; Borrowed funds of $35 million; and Bank capital of $30 million. If the required reserve rate is 10%,
1) what is the amount of excess reserves the bank is currently holding?
2) How do you describe the general financial position of this bank ?
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Investments An Introduction
Authors: Herbert B. Mayo
13th Edition
0357127951, 978-0357127957
