Question
A regional bank receives a new demand deposit (DD) of $5,000,000 in addition to existing demand deposits of $4,000,000. The current reserve requirement is 10%.
A regional bank receives a new demand deposit (DD) of $5,000,000 in addition to existing demand deposits of $4,000,000. The current reserve requirement is 10%. The bank has $100,000 in vault cash and $350,000 in deposits at the Federal Reserve that are not yet invested. How much in excess reserve does the bank have available to make new loans?
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Practical Management Science
Authors: Wayne L. Winston, Christian Albright
5th Edition
1497
