Why the bank has excess reserves
A bank with deposits of $500 million has $75 million in cash on hand, $50 million in deposits with the Fed, and $80 million in government securities. If the reserve requirement is 15 percent, the bank has excess reserves of?
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You plan to conduct a survey to find what proportion of the workforce has two or more jobs. You decide on the 99% confidence level and state that the estimated proportion must be within 2% of the population proportion. A pilot survey reveals that
Assume that Bradley requires a rate of return on his investment of 8% per annum and that his first salary increase resulting from his degree will take place in October 2016.
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