Problema bank with deposits of 500 million has 75 million, Ask an Expert

Finance

Problem:

A bank with deposits of $500 million has $75 million in cash on hand, $50 million in deposits with the Fed, and $80 million in government securities.

Required:

Question 1: If the reserve requirement is 15 percent, the bank has excess reserves of?

A) $50 million.

B) $ 130 million

C) 0

D) 5 million.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162600

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