New Bank Balance Sheet Assets Liability and Equity Required Reserves: $ 0.30 million Deposits: $ 1.50 million Excess Reserves: $ 1.90 million Equity: $ 1.50 million Government Bonds: $ 0.80 million   To correct this situation, we can sell $0.10 million in government bonds to Typical Bank.  When we sell $0.10 million in government bonds to Typical Bank, what is the (new) value of Typical Bank's excess reserves on hand? ______ Million

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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New Bank Balance Sheet

Assets
Liability and Equity
Required Reserves: $ 0.30 million
Deposits: $ 1.50 million
Excess Reserves: $ 1.90 million
Equity: $ 1.50 million
Government Bonds: $ 0.80 million
 

To correct this situation, we can sell $0.10 million in government bonds to Typical Bank. 

When we sell $0.10 million in government bonds to Typical Bank, what is the (new) value of Typical Bank's excess reserves on hand?

______ Million

 

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