Calculate the banks excess reserves

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Reference no: EM13206880

below is the balnce sheet of a bank. the reserve requirment is 3% on the first 30 million of transactions deposits and 10% on transactions deposits in excess of 30 million. the bak holds no required clearinf balances. Bank balance sheet(amount in millions) Assets Liabliities+capital 1.Reserves-15.9

1. Transactions deposits-180.0

2.Securities-34.1 2.Capital-20.0

3.Loans-150.0 Total liabilities+capital-200.0

4.Total assets-200.0

A.calculate the banks excess reserves

b.suppose that the bank sells 5million in securities to get new cash. draw up the banks balance sheet after this tranaction.what are the banks excess reserves?

Reference no: EM13206880

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