The reserve requirement is 5% on the first $200 million and 10% in excess of 200 million.
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Question:
The reserve requirement is 5% on the first $200 million and 10% in excess of 200 million. The bank has loans of $200 million which is equivalent to the excess reserves.
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How much is the excess reserves?
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If the bank sells securities of $10 million and loans this out, prepare an updated
balance sheet.
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
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