If a bank has $150 million in deposits and $25 million in reserves with a reserve requirement of 0.15, million a. how much are its required reserves? million b. how much excess reserves does it have? c. how much can it lend? million
If a bank has $150 million in deposits and $25 million in reserves with a reserve requirement of 0.15, million a. how much are its required reserves? million b. how much excess reserves does it have? c. how much can it lend? million
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section: Chapter Questions
Problem 2WNG
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![If a bank has $150 million in deposits and $25 million in reserves with a reserve
requirement of 0.15,
million
a. how much are its required reserves?
million
b. how much excess reserves does it have?
million
c. how much can it lend?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc4e78b0-bccc-46e3-8327-545d6fa873e5%2F51aadfb7-f65f-4dcf-8839-e3b46a175e2b%2Fwunymip_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If a bank has $150 million in deposits and $25 million in reserves with a reserve
requirement of 0.15,
million
a. how much are its required reserves?
million
b. how much excess reserves does it have?
million
c. how much can it lend?
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