Question
please check my work and show your work if my calculation is not accurate Suppose a bank currently has $250,000 in deposits and $27,000 in
please check my work and show your work if my calculation is not accurate
Suppose a bank currently has $250,000 in deposits and $27,000 in reserves. The required reserve ratio is 10%. If at the end of the day, there is an unexpected withdrawal of $4,000 in reserves, what is the bank's resulting reserve ratio (expressed as a %)?
0
Using the information from the prior problem, how much would the bank need to borrow in either the Fed Funds market or at the discount window, to be in complicance with the required reserve ratio?
100000
This morning, you observe in the markets that the nominal interest rate is 6%, which includes inflation expectations of 4%. If inflation expectations go up by 1% and nominal interest rates go up by 1.5%, what is the resulting real interest rate?
2.5
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