SOLUTION: The friendly National Bank holds $50 million in reserves at its Federal Reserve District Bank. The required reserves ratio is 12 percent. a. If the bank has $600 million in depos

Question 566777: The friendly National Bank holds $50 million in reserves at its Federal Reserve District Bank. The required reserves ratio is 12 percent.
a. If the bank has $600 million in deposits, what amount of vault cash would be needed for the bamk to be in compliance with the required reserves ratio?
b. The Friendly National Bank holds $10 million in vault cash, determine the required reserves ratio that would be needed for the bank to avoid a reserves deficit.
Found 2 solutions by solver91311, alioop:
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!

I already answered this question.

John

My calculator said it, I believe it, that settles it

Answer by alioop(1) (Show Source): You can put this solution on YOUR website!

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