Calculate the banks required reserves and excess reserves

Assignment Help Financial Management

Reference no: EM131012052

A bank has cash of $3 million, reserve deposits at the Federal Reserve of $35 million, transaction deposits of $375 million, non-personal time deposits of $150 million. Calculate the bank’s required reserves, excess reserves, and total reserves.

Reference no: EM131012052

Questions Cloud

Make annual withdrawals during retirement, : Jared is looking forward to graduating with his MBA from OSU. He wants to begin saving for retirement and believes he will need $135,000 during his first year in retirement. However, he will make annual withdrawals during retirement, with each withdr..

Shareholders as the annual dividend : Michael's, Inc. just paid $2.15 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.70 percent. If you require a rate of return of 8.9 percent, how much are you willing to pa..

What is the effective annual yield : PK Software has 8.6 percent coupon bonds on the market with 25 years to maturity. The bonds make semiannual payments and currently sell for 110.75 percent of par. What is the current yield on PK's bonds? What is the effective annual yield?

Dividends are tax-free income for individual investors : From a legal perspective, preferred stock is a form of corporate equity. All classes of stock must have equal voting rights per share. Common shareholders elect the corporate directors while the preferred shareholders vote on mergers and acquisitions..

Calculate the banks required reserves and excess reserves : A bank has cash of $3 million, reserve deposits at the Federal Reserve of $35 million, transaction deposits of $375 million, non-personal time deposits of $150 million. Calculate the bank’s required reserves, excess reserves, and total reserves.

How big will the balloon payment be : You have just arranged for a $1,760,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 7.6 percent, and it calls for monthly payments over the next 25 years. However, the loan has an eight-year balloon payment, ..

Assume the beginning of the eight year for payment purposes : You are trying to figure out how you can pay for your two children’s college education. The older one will start college in 8 years (assume the beginning of the eight year for payment purposes) and the younger on in 10 years. You estimate that the ol..

Account at the end of period for each of these investments : You have been given the following options for investment. What you have in the account at the end of the period for each of these investments. You can invest $100,000 today at a 2.10% rate compounded daily for 5 years.

The financial planning processes : The financial planning processes include all of the following EXCEPT:

User Account

All Pages