Dollar amount of deposits

Reference no: EM13744657

A new bank has vault cash of $1 million and $5 million in deposits held at its Federal Reserve District Bank.

A) If the required reserves ratio is 8 percent, what dollar amount of deposits can the bank have?

B) IF the bank holds $65 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied?

Reference no: EM13744657

Questions Cloud

Create a bidder process and discuss the element : Create a bidder process, and discuss the element that would be used. What contributes to a healthy bid list. How you would evaluate proposals or bids from suppliers and chose the appropriate supplier

Points of financial impact on a company : List and explain the points of financial impact on a company if it raises the credit standards required of its customers who utilized trade credit offered by the company.

What is the firm dividend : Firm X has a tax rate of 30%. The price of its new preferred stock is $63 and its flotation cost is $3.15. The cost of new preferred stock is 12%. What is the firm's dividend?

What audiences do you think ronald reagan was targeting : What audiences do you think Ronald Reagan was targeting? How do his messages to these different audiences differ? Do you think Reagan's speech was politically effective? Why, or why not.

Dollar amount of deposits : A new bank has vault cash of $1 million and $5 million in deposits held at its Federal Reserve District Bank. If the required reserves ratio is 8 percent, what dollar amount of deposits can the bank have?

Real world experiences on market structure : Discuss a concept that could be related to your employment or other real world experiences on market structure.

Determine the market rate of interest : Determine the market rate of interest for a bond with the following charateristics: the bond pays a 7% coupon (semi-annually), its time until maturity is 20 years and it is currently selling for $1154.

Estimate imply about the price elasticity of demand : What does this estimate imply about the price elasticity of demand for ice cream cones and calculate the price elasticity of demand when the price of an ice cream cone rises from $3 to $4. What does this estimate imply about the price elasticity of d..

What were major collective achievement of islamic modernists : Define Islamic modernism and list some of the key figures involved. What were the major collective achievements of Islamic modernists? Include introduction body and conclusion footnotes.

User Account

All Pages