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Question 5: (10 marks) Consider the following consolidated balance sheet of a hypothetical bank called ABC Bank. Consolidated Balance Sheet of ABC Bank $1,000 30

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Question 5: (10 marks) Consider the following consolidated balance sheet of a hypothetical bank called ABC Bank. Consolidated Balance Sheet of ABC Bank $1,000 30 ASSETS Vault Cash Deposits at the Fed Loans Securities Total LIABILITIES $100 Deposits 10 Bank Capital 800 120 1,030 Total 1,030 Assume that the Federal Reserve requires ABC Bank to hold at least 10% of deposits as reserves. a. What is the reserves in total amount? (2 marks) b. What is the reserve ratio? (3 marks) c. What is the required reserves in total amount? (2 marks) d. What is the excess reserves in total amount

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