Assume that the Fed decides to increase the required reserve percentage on transaction accounts above $40 million
Question:
Assume that the Fed decides to increase the required reserve percentage on transaction accounts above $40 million from 8 percent to 10 percent. All other information remains the same as given in Problem 6, including the transaction account balances held by Dell National Bank.
a. What would be the dollar amount of required reserves?
b. What percentage of total transaction account balances held by Dell would be held as required reserves?
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a 40 million x 02 8 mil...View the full answer
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Related Book For 
Introduction to Finance Markets, Investments and Financial Management
ISBN: 978-1119398288
16th edition
Authors: Ronald W. Melicher, Edgar A. Norton
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