Find level of excess reserves the bank has, Microeconomics

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Find level of excess reserves the bank has

Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is 10 percent. The bank now sells $5,000 in securities to the Federal Reserve Bank in its district, receiving a $5,000 increase in reserves in return. What level of excess reserves does the bank now have?

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Microeconomics: Find level of excess reserves the bank has

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Microeconomics: Find level of excess reserves the bank has

Reference No:- TGS0525045

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Find level of excess reserves the bank has

Reference No:- TGS0525045

Recent Questions Asked Microeconomics

Q : Discuss the historical development

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Q : Dynamics of how self esteem affects self efficacy

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