2 answers

A new bank has vault cash of $1 million and $5 million in deposits held at its federal reserve...

Question:

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 dollaramount of deposits can the bank have?

Answers

8 million so 3 million.

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 = 6*8% = 0.48million answer.

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