Calculate bank one

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Economy G, which contains Bank One. Bank One has $10,000 cash in its vaults and $8,000 US government bonds, as well as $22,000 Deposit in the Fed. It has $250,000 in checking and $100,000 in savings deposits. It uses our default rr and its residents hold $50,000 in currency (cash).

Calculate Bank One's er (desired excess reserves ratio). (We usually calculate er for an entire economy, but we'll do it this way for now.) Round your answer to three decimal places; don't convert to percent.

Reference no: EM132352387

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