Reference no: EM132324935
Given the information below:
rd = 9% Municipal Bonds = $11,700,000 Household CD's = $32,250,000
Demand Deposits = $39,750,000 Savings Deposits = $125,250,000 Vault Cash = $2,660,000
Secondary reserves = $24,610,000 Bank deposits with the Fed = $12,500,000
Determine:
a) the level of required reserves, excess reserves, and the level of total reserves.
b) the maximum deposit outflow a bank can sustain without having to acquire additional reserves.