Solved: Why does the institution hold any excess reserves, Microeconomics

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Why does the institution hold any excess reserves

Problem

Suppose that the total liabilities of a depository institution are transactions deposits equal to $2 billion. It has $1.65 billion in loans and securities, and the required reserve ratio is 15 percent. Does this institution hold any excess reserves? If so, how much?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why does the institution hold any excess reserves

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