Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has million dollars in vault cash
Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has million dollars in vault cash
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Suppose that from a new checkable deposit,
First National Bank holds eight million dollars
on
deposit with the Federal Reserve, nine million
dollars in excess reserves, and faces a
required
reserve ratio of ten percent. Given this
information, we can say First National Bank
has
million dollars in vault cash](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F013fc860-271e-4381-9163-3441bd040d24%2F631f6d49-a7e2-45a6-94c9-d0f3a1d1ebc0%2Fy2o85ti_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that from a new checkable deposit,
First National Bank holds eight million dollars
on
deposit with the Federal Reserve, nine million
dollars in excess reserves, and faces a
required
reserve ratio of ten percent. Given this
information, we can say First National Bank
has
million dollars in vault cash
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