What dollar amount of deposits can the bank have

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Reference no: EM13288371

A new bank has vault cash of $ 1 million and $ 5 million in deposits held at its Federal Reserve District Bank

a. If the required reserve ratio is 8 percent, what dollar amount of deposits can the bank have?

b. If the bank holds $ 65 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserve ratio is implied?

Reference no: EM13288371

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