Get comprehensive answers to your questions with the help of IDNLearn.com's community. Our community provides accurate and timely answers to help you understand and solve any issue.
Sagot :
The Bank of Dallas has excess reserves of $30 million, deposits of $180 million, and the required reserve ratio is 10%. $48 million is the value of this bank's total reserves. $30 million is invested in loans and bonds.
Here, reserve required to be maintained is $180*10% = $18million. Given the excess reserve is $3o million. Therefore, the total value of this bank reserve is $48 million. And the excess reserve i.e. $30 million should be invested in loans and bonds.
Bank reserve are calculated by multiplying its total deposits by the reserve ratio. Therefore $18 million should be reserve required. And excess should be invested in loans and bonds.
Learn more about reserve ratio here.
https://brainly.com/question/13758092
#SPJ4
Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.