Question
Table 3-1 Reserve Requiements as of December 2014 Table 3-1 Reserve Requiements as of December 2014 0% on net transaction accounts $0 to $14.5 million
Table 3-1 Reserve Requiements as of December 2014
| Table 3-1 Reserve Requiements as of December 2014 |
|---|
| 0% on net transaction accounts $0 to $14.5 million |
| 3% on net transaction accounts $14.5 to $103.6 million |
| 10% on net transaction accounts over $103.6 million |
| 0% on nonpersonal time deposits |
| 0% on Eurocurrency liabilities |
Assume that Goodfellows National Bank has $60 million in transaction accounts, $20 million in nonpersonal time deposits, and $10 million in Eurocurrency liabilities. Given the reserve requirements shown in Table 3-1, how much must Goodfellows keep on hand in reserve funds?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
14th edition
1285867971, 978-1305480742, 1305480740, 978-0357686393, 978-1285867977
