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The Effective Use of Capital Question 1: If we assume there is no transaction account deductions, according to Exhibit 1 1.3, calculate the minimum reserve

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The Effective Use of Capital Question 1: If we assume there is no transaction account deductions, according to Exhibit 1 1.3, calculate the minimum reserve requirement for the bank. Does the bank have enough reserve? EXHIBIT 11.3 Reserve Requirement Percentages for Depository Institutions Effective in 2014 Type of Deposit Percentage Net transactions accounts Exempt amount $13.3 million Up to $89.0 million Over $89.0 million All other liabilities oo wo Source: Board of Governors of the Federal Reserve System, Press Release, November 5, 2013. Deposit* Reserve Requirement= Question 2: Assign the risk weight for each asset and calculate the risk-weighted assets for the bank. Question 3: Calculate how much Tie 1 capital and Tie two capital the bank has. " Focus BE E

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