Chapter 12. Money, Banking and The Financial System : Pre- Class & In-Class Activities Packet

2. r is 9 percent, RR are $10 million, and (total) reserves (R) are $50 million. What do excess reserves (ER) equal? What do DD equal?

4. A bank currently has $100 million DD, $4 million in reserves, and $8 million in securities. If the r is 10 %, is the bank meeting its legal R? Explain.

6. If currency held outside banks is $200 billion and M1 is $600 billion, do we know for sure what Checkable Deposits (DD) equal? Why/why not?

8. If checkable deposits are $20 million and the required reserve ratio is 15 percent, what do required reserves (RR) equal?

10. If bank deposits at the Fed equal $40 million and reserves (R) equal $43 million, what does vault cash equal?