The First National Bank has $100million in chequable deposits. The desired reserve ratio is 6%. (i) Calculate the Bank's reserves. Round your answer to two decimal places. (ii) The Bank desires to invest $30million in Treasury bills. The Treasury bills are currently trading at $4986.7 (including brokerage fee). How many Treasury bills does the Bank purchase? Round your answer to the nearest whole number. (iii) The Bank makes commercial loans of $25millions and lends $39.3million in mortgages. Calculate the amount of bank capital.

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Q: Need fully correct solution for this asap. I'll rate positive for Correct solution.

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A:

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Q: For all numerical answers, just type in the number - no $ signs, no commas, no words. Thanks!…

A: 1. Rd = 100 - 5(4) = 100 - 20 = 80 2. Rd = 120 - 5(4) = 120 - 20 = 100

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A: (D)

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