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Zarrin [17]
3 years ago
9

Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on

deposit with the Federal Reserve, and nine million dollars in excess reserves. Given this information, we can say First National Bank has ________ million dollars in required reserves.
Business
1 answer:
Arada [10]3 years ago
4 0

Answer: It has 1 milion dollars in required reserves

Explanation:

Tot. Res = Vault cash + Deposit with Federal Reserve

Tot. Res = 2 million dollars + 8 million dollars = 10 million dollars

Total reserves are the sum of excess reserves and required reserves .

Tot. Res. = Exce. Res. + Req. Res.

10 million dollars = 9 million dollars = Req. Res.

Req. Res. = 10 million dollars- 9 million dollars.

Req. Res. = 1 million dollars.

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2 years ago
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Suppose that the populations of the United States and China both increase by 12 million people in one year. What would be the re
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