A new bank has vault cash of $1.7 million and $5 million in deposits held at its Federal Reserve District Bank. a) the required reserves ratio is 8 percent, approximately what dollar amount of deposits can the bank hold? (Answer in millions)
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A new bank has vault cash of $1.7 million and $5 million in deposits held at its Federal Reserve District Bank.
a) the
| Bank deposits | $Type your answer here million |
b) If the bank holds $72 million in deposits and currently holds bank reserves such that
| Required reserves ratio | Type your answer here |
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- Beleaguered State Bank (BSB) holds $200,000,000 in deposits and maintains a reserve ratio of 10%, which also is the reserve requirement. On paper, write the T account for BSB and use it to answer the rest of this question. Now suppose that BSB's largest depositor withdraws $10,000,000 from her account one day. On paper, show the effect of this on the T account. How many dollars of cash reserves does BSB need to raise to be allowed to open for business the next morning?The figures in the table below are for a single commercial bank. All figures are in thousands of dollars. Refer to the data given above. If the reserve ratio is 10 percent and a check for $10,000 is drawn and cleared in favor of another bank, then the bank above will end up with excess reserves of: Select one: a. $8,000 b. $12,000 c. $13,000 d. $18,000A bank has $770 million in checkable deposits. The bank has $85 million in reserves. If the reserve requirement is 10%, the bank's required reserves are _____________ and its excess reserves are _____________. A. $85 million; $0 B. $770 million; $85 million C. $89 million; $21 million D. $77 million; $8 million
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- Your bank has the following balance sheet: Assets Liabilities Reserves $50 million Checkable deposits $200 million Securities $50 million Loans $150 million Bank capital $50 million If we assume that the required reserve ratio is 10%, please provide a detailed write-up of what actions could (should) the bank manager take if there is an unexpected deposit outflow of $50 million? Please rank the feasible courses of action from the most desired to least desired and thoroughly explain the reasoning behind your ranking systemThe table gives information from a bank's balance sheet. Calculate the bank's loans, securities, and reserves. The bank's loans are $ million. The bank's securities are $ million. The bank's reserves are $ million. Item (millions of dollars) Checkable deposits 500 Savings deposits 600 Small time deposits 500 Loans to businesses 1,050 Government securities 500 Currency 20 Reserves at the Fed 30Let us assume that a bank acquired reserves and deposits equal to ₱1,000 with a required reserve of 10% as imposed by the central bank. Solve for the amount of money that the bank can lend, given the reserves that are legally required to support the ₱ 1,000 deposit and the money multiplier
- Old Bank started its first day of operations (11 March, 2021) with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. (a) If required reserves are 8%, what does the bank balance sheets look like?XYZ bank currently has 600 million in transaction deposits on its balance sheet. The current reserve requirement, set by the central bank, is 8%. The central bank has decided to increase the reserve requirement from 8% to 10%. Show the effect of their decision on: Required reserve. Excess reserve. Change in bank deposit.Normanby Bank has the following balance sheet. Assets ($ million) Liabilities and equity ($ million) Treasury notes 85 Deposits 125 Loans 115 Interbank funds 55 Equity 20 Total assets 200 Total liabilities and equity 200 One of Normanby Bank’s wholesale customers decides to make an immediate deposit withdrawal of $15 million. To fund this withdrawal request, the bank adopts a liability liquidity management approach via the interbank funds market. Which of the following statements is CORRECT? Select one: a. After the transactions, the bank has 140m in deposits, 40m in interbank funds, and total assets remain unchanged. b. After the transactions, the bank has 110m in deposits, 40m in interbank funds, and 170m in total assets. c. After the transactions, the bank has 125m in deposits, 70m in interbank funds, and 215m in total assets. d. After the transactions, the bank has 110m in deposits,…
