Question
A bank holds deposits worth $10 million. It has $1 million in reserves, and the reserve requirement is 5%. The bank has also given out
A bank holds deposits worth $10 million. It has $1 million in reserves, and the reserve requirement is 5%. The bank has also given out loans worth $20 million. These are all the items on the bank's balance sheet at the moment. This means that the bank capital is $___. Give your answer with no $ sign and no decimals. Your Answer:
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Applied Quantitative Finance
Authors: Härdle
3rd Edition
3662544857, 978-3662544853
