Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank

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Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank holds $1 million in excess reserves and the required reserves ratio is 8 percent, what level of deposits are being held?
Deposits being held

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Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

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Question Posted: Jul 26, 2013 06:52 AM

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Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank

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Total reserves Bank deposits at the fed vault cash Total r...View the full answer

Introduction to Finance Markets Investments and Financial Management

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