Consider a bank policy to maintain 12% of deposits as reserves. The bank currently has $10 million

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Consider a bank policy to maintain 12% of deposits as reserves. The bank currently has $10 million in deposits and holds $400,000 in excess reserves. What is the required reserve on a new deposit of $50,000?

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Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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Question Posted: Nov 12, 2012 01:10 AM

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Consider a bank policy to maintain 12% of deposits as reserves. The bank currently has $10 million

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Financial Markets And Institutions

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