Question
A bank reports reserves of RM100,000, government securities of RM250,000, loans of RM750,000, checkable deposits of RM900,000, and owners' equity of RM200,000. The desired reserve
A bank reports reserves of RM100,000, government securities of RM250,000, loans of RM750,000, checkable deposits of RM900,000, and owners' equity of RM200,000. The desired reserve ratio is 10 percent and the bank wants to hold as reserves only the amount it is required to hold. What is the amount of excess reserves for this bank? Show your work. (10 marks)
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Essentials of Business Driven Information Systems
Authors: Paige Baltzan, Amy Phillips
1st edition
1260004716, 978-0073376721
