1. A bank with deposits of $500 million has $75 million in cash on hand, $50 million...
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1. A bank with deposits of $500 million has $75 million in cash on hand, $50 million in deposits with the Bank of Canada, and $80 million in government securities. If the reserve requirement is 15 percent, the bank has excess reserves of?
2. The desired reserve ratio is 10 percent. A bank with $100 million in deposits has $5 million in vault cash, $6 million on deposit with the Bank of Canada, government securities of $9 million, and other assets of $80 million. If someone deposits a cheque for $1 million in the bank, the maximum loan the bank can now make is?
Related Book For
Modeling Monetary Economies
ISBN: 978-1107145221
4th Edition
Authors: Bruce Champ, Scott Freeman, Joseph Haslag
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