Bank A has checkable deposits of $140 million, vault cash equaling $1 million and deposits at the Fed equaling $14 million. If the required reserve rate is ten percent what is the amount of excess reserves Bank A is holding?
A) It does not have any excess reserves
B) $15 million
C) $2 million
D) $1 million
Correct Answer:
Verified
Q55: Bank A has checkable deposits of $100
Q56: Over the two-year period during which the
Q57: Which of the following have the same
Q58: To obtain a discount loan from the
Q59: When the Fed makes a discount loan,
Q61: Assume that the required reserve rate is
Q62: The simple deposit expansion multiplier is really
Q63: The use of deposit sweeping allows banks
Q64: If we assume a ten percent required
Q65: If required reserves are expressed by RR;
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents