What are the excess reserves and required reserves

Assignment Help Econometrics

Reference no: EM13222484

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: EM13222484

Questions Cloud

What are major economic justification for state intervention : The term "globalization" is increasingly being used in the study of international relations and international political economy. Increasingly, also, there are debates surrounding the definition of the term and the extent of relevance in the global..

Explain the vapor pressure of a solution containing : The vapor pressure of a solution containing 5.40 g of a nonvolatilesubstance in 90 g water is 23.32 torr. What is the molar mass of the solute?

Find out the mass percentage of nacl in the mixture : When 13.0 g of the mixture is dissolved in enough water to make 500. mL of solution, the solution exhibits an osmotic pressure of 6.85 atm at 25°C. Determine the mass percentage of NaCl in the mixture.

Define what are the pareto optimal allocations : The only difference is that now when two agents agree on (50, 50), each gets 20 as a bonus. What are the Pareto optimal allocations. (An allocation specifies how much each agent ultimately gets.) What the bonus associated with (50, 50) is 60 each.

What are the excess reserves and required 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. If that institution holds $300 million in transactions deposits and is subject ..

Compute the molar concentration of o2 at equilibrium : 2NO2(g)has come to equilibrium, the concentration of NO2 is 2.2 x 10-3 mol/L. Calculate the molar concentration of O2 at equilibrium.

Explain single snowflake using heat capacity relationships : Estimate how much heat is required to melt a single snowflake using heat capacity relationships. Assume there are 500 water molecules in a snowflake.

User Account

All Pages