Hat are its required reserves-what are its excess reserves

Reference no: EM13319881

Assume a depository institution holds vault cash of $3 million, reserve deposits at the Fed of $25 million, and has borrowed $2 million from the Fed's discount window. If that institution holds $300 million in transactions deposits and is subject to a 3 percent reserve requirement on the first $50 million of those deposits and to a reserve requirement of 10 percent on all transactions deposits over $50 million, what are its required reserves? What are its excess reserves?

Reference no: EM13319881

Questions Cloud

Tax consequences of retire between mortgage on residence : Tom in 35% tax bracket and recently collected $100,000 on a life insurance police. he currently owes $120,000 on her personal residence and $120,000 on business property.

Confidence interval estimates for the mean : The Highway Safety Department wants to study the driving habits of individuals. A sample of 100 cars traveling on the highway revealed an average speed of 60 miles per hour with a standard deviation of 11 miles per hour. Construct a 95% and 80% confi..

Estimate of population mean-confidence interval estimates : The Highway Safety Department wants to study the driving habits of individuals. A sample of 100 cars traveling on the highway revealed an average speed of 60 miles per hour with a standard deviation of 11 miles per hour. Give a point estimate of the ..

Presenting ethical dilemma-medical indications : Presenting Ethical Dilemma: The Resident of MICU asks for an Ethics Committee Consult to help decide if 80 yr old chronic alcoholic with recurring GI bleed should be given more than 20 units of blood

Hat are its required reserves-what are its excess reserves : Assume a depository institution holds vault cash of $3 million, reserve deposits at the Fed of $25 million, and has borrowed $2 million from the Fed's discount window.

How much would the monetary base change : If the Fed bought $3.5 billion in government securities and the public withdrew $2.0 billion from their transactions deposits in the form of cash, by how much would the monetary base change?

Fall of soviet union and the outbreak of ethnic conflicts : What is the connection between the fall of the soviet union and the outbreak of ethnic conflicts in russia and the republics.

Focus on getting more business from existing customers : You are a regional provider of banking services in the Southwest, and you are growing rapidly by acquiring smaller banks, banks that do not necessarily share your vision. Write a possible marketing strategy for your bank that will unify your marketin..

Use the decision tree to determine how many machines : A manager is trying to decide whether to buy one machine or two. If only one is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales will be lost, however, because the lead time for purchasing this type o..

User Account

All Pages