Question - The bank has $2,000,000 in deposits. Required reserves are 10%. Calculate how much the bank must keep in reserves and how much the bank can loan out.
The bank has $4,500,000 in deposits. Required reserves are 20%. Calculate how much the bank must keep in reserves and how much the bank can loan out.
The bank has $300,000,000 in deposits. If they must have 3% required reserves for the first $50,000,000 and 10% on deposits above that, what is the required reserves? What if they currently hold $28,000,000 in reserves? Is there excess reserves? If so, how much? What would they do with the excess reserves?