The commercial banking system has excess reserves of $3,000. Then new loans of $30,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be ____%.
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- What is the difference between digital banking and branch banking?Your bank has the following balance sheet: Assets Liabilites Reserves $50 million Checkable Deposits $200 million Securites $50 million Bank Capital $50 million Loans $150 million If the required reserve ratio is 10%, what possible actions can the bank manager take if there is an unexpected deposit outflow of $50 million?what is the benefit of offshore banking to clients
- How did the creation of the Federal Deposit Insurance Corporation change the nature of banking in the United States? The government began to guarantee bank deposits. Depositors could transfer investments without penalties. Depositors were guaranteed minimum interest rates on savings accounts. The government required taxpayers to open savings accounts.As part of the wave of “deregulation” of financial markets in the 1980s, banking laws were changed to allow commercial banks in the United States to offer relatively liquid savings accounts that could pay a market interest rate. What were these accounts called? How did they work?Find the required reserve if the excess reserve is $600 and the actual reserve is $100