-If total bank reserves are $17.5bln., excess reserves are $3.4bln., and the res

Question

-If total bank reserves are $17.5bln., excess reserves are $3.4bln., and the reserve requirement ratio is 6.9%, what are the bank's total deposits, in $bln (to the nearest $0.01bln)?

-If a bank faces a reserve requirement ratio of 7.6% and has total deposits of $305.7bln., what are the bank's required reserves, in $bln (to the nearest $0.01bln)?

-If total bank reserves are $13.9bln., excess reserves are $3.3bln., and total deposits are $102.2bln., what is the reserve requirement ratio, in %, to the nearest 0.01%? (E.g., if your answer is 5.833%, record it as 5.83.)

Explanation / Answer

1)

required reserves=bank reserves-excess reserves

=17.5-3.4=14.1

the bank's total deposits are =14.1/6.9%=204.35 bn

2)

the bank's required reserves=7.6%*305.7=23.23 bn

3)

what is the reserve requirement ratio=(13.9-3.3)/102.2=10.37%

the above is answer..

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.