A new bank has vault cash of 1 million and 5 million in

Reference no: EM13381233

A new bank has vault cash of $1 million and $5 million in deposits held at its Federal Reserve District Bank.

A) If the required reserves ratio is 8 percent, what dollar amount of deposits can the bank have?

B) IF the bank holds $65 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied?

Reference no: EM13381233

Questions Cloud

Affleck incs business is booming and it needs to raise more : affleck inc.s business is booming and it needs to raise more capital. the company purchases supplies on terms of 110

The simplex financial system is characterized by a required : the simplex financial system is characterized by a required reserves ratio of 11 percent initial excess reserves are 1

Judy johnson is choosing between investing in two treasury : judy johnson is choosing between investing in two treasury securities that mature in five years and have par values of

You are serving a jury a plaintiff is suing the city for : you are serving a jury. a plaintiff is suing the city for injuries sustained after a freak street sweeper accident. in

A new bank has vault cash of 1 million and 5 million in : a new bank has vault cash of 1 million and 5 million in deposits held at its federal reserve district bank.a if the

Abbix has a complex financial system with the following : abbix has a complex financial system with the following relationships the ratio of required reserves to total deposits

1 one of the key issues in managing the finances of a firm : 1. one of the key issues in managing the finances of a firm is achieving the correct balance between debt and equity

A 3- year fully amortizing constant payment mortgage loan : a 3- year fully amortizing constant payment mortgage loan for 320000 is to be made with an interest rate of 5.

Question 1consider an asset which pays continuous : question 1consider an asset which pays continuous dividend.nbsp letnbsp s 100 and r10.nbspsuppose the 6-month futures

User Account

All Pages