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1. A new bank has vault cash of $1 million and $5...

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1. 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?,Please show all work

 

Paper#4078 | Written in 18-Jul-2015

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