Question
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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Introduction To Estimating Economic Models
Authors: Atsushi Maki
1st Edition
0415589878, 978-0415589871
