How much a depository institution holds vault cash

Reference no: EM13222739

A depository institution holds vault cash of $1 million, reserve deposits at the Fed of $49 million. If that institution holds $500 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: EM13222739

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