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What would be the cost of this insurance? policy

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Excess reserves act as insurance against deposit outflows. Suppose that on a yearly? basis, Malcom Bank holds ?$10 million in excess reserves and? $88 million in required reserves. Malcom Bank can earn an interest of 2.75 on its loans and that the interest paid on? (total) reserves is 0.1

What would be the cost of this insurance? policy?

Please round your answer to ?three decimals

Reference no: EM132166568

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