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What required reserves ratio is

A new bank has vault cash of 1million and 5 million in deposit held at its Federal reserve district bank. a. If the required reserve ration is 8% what dollar amount of deposits can the bank have? b. If the bank holds $65million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied?

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Finance Basics: What required reserves ratio is

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What required reserves ratio is

Reference No:- TGS0625010

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What required reserves ratio is

Reference No:- TGS0625010

Recent Questions Asked Finance Basics

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