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A commercial bank has vault cash of $2.1 million and reserve deposits at the Fed of $22 million. The bank holds $205 milion in transactions

A commercial bank has vault cash of $2.1 million and reserve deposits at the Fed of $22 million. The bank holds $205 milion in transactions deposits that are subject to 10% reserve requirements.

a) What are the required reserves?

b)What are the excess reserves?

c) If depositors withdraw $120,000 from transaction deposits, what are the bank's excess reserves?

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