Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 8%, and reserves are currently $25 million. The amount of deposits is $ 312.5 million. (Round your response to one decimal place.) The reserve shortage created by a deposit outflow of $4 million is $ ____ million.
Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 8%, and reserves are currently $25 million. The amount of deposits is $ 312.5 million. (Round your response to one decimal place.) The reserve shortage created by a deposit outflow of $4 million is $ ____ million.
Chapter19: Money Creation
Section: Chapter Questions
Problem 4SQP
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Angus Bank holds no
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