The First National Bank of Anytown had $50,000,000 in its reserve account at the Fed one morning.

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The First National Bank of Anytown had $50,000,000 in its reserve account at the Fed one morning. Later that morning, $2,500,000 in checks that had been deposited at the Bank of Anytown were processed at the Fed, and the bank ordered $1,000,000 in currency.

Later that day, $3,000,000 worth of checks written by the bank’s customers cleared through the Fed. How much did the First National Bank of Anytown have in its reserve account at the Fed at the end of the day?

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Economics Theory And Practice

ISBN: 9781118949733

11th Edition

Authors: Patrick J. Welch, Gerry F. Welch

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