Determine the required reserves ratio

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1.) A new bank has a vault cash of $1 million and $5 million in deposits held at its Federal Reserve District Bank. a.) if the required reserve ration is 8 percent, what dollar amount of the deposits can the bank have? b.) if the bank holds $65 million in deposits and currently holds bank reserves such that access reserves are zero, what required reserves ratio is implied? 4.) A bank has $10 million in vault cash and 110 million in deposits. if total bank reserves were $15 million with $2 million considered to be excess reserves, what required reserves ratio is implied? 5.) The Friendly National Bank holds $50 million in reserves at its Federal Reserve District Bank. the required reserves ratio is 12 percent. a.) If the bank has $600 million in deposits, what amount of vault cash would be needed for the bank to be in compliance with the required reserves ratio? b.) If the bank holds $10 million in vault cash, determine the required reserves ratio that would be needed for the bank to avoid a reserves deficit. c.) If the Friendly National Bank experiences a required reserves deficit, what actions can it take to be in compliance with the existing required reserves ratio?

Reference no: EM13297212

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