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Question 1. Assume that Standard Bank has deposit of BDT 125 million and capital of BDT 15 million. Required reserve is 18 percent. The Bank
Question 1. Assume that Standard Bank has deposit of BDT 125 million and capital of BDT 15 million. Required reserve is 18 percent. The Bank disburses BDT 90 million to Unilever to start its new plant. Standard Bank buys government treasury bill of BDT 15.5 million. How much excess reserve does the Bank has? Show the balance Sheet of Standard Bank in a T-account. Prescribe the best way for the bank to meet a deposit out flow of BDT 14 million.
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