If the Fed's reserve requirement is 5 percent, then what quantity of excess reserves does the Bank of Cheerton now hold?
1 answer:
The quantity of excess reserves that the Bank of Cheerton now hold is $210
From the attached table, the amount generated on the reserve is $4,200
If the Fed's reserve requirement is 5 percent, then the quantity of excess reserves that the Bank hold is given as:
Quantity of excess reserves = 5% of $4,200
Quantity of excess reserves = 0.05 * 4200
Quantity of excess reserves = $210
Hence the quantity of excess reserves that the Bank of Cheerton now holds is $210.
Learn more on discounts here; brainly.com/question/24304697
You might be interested in
9514 1404 393
Answer:
x = 5, x = 11
Step-by-step explanation:
Set f(x) = 0 and solve for x.
0 = (x -8)² -9
9 = (x -8)² . . . . . add 9
±√9 = x -8 . . . . . take the square root
±3 +8 = x . . . . . . . add 8
That is, ...
x = 8 -3 = 5 . . . . lesser x
x = 8 +3 = 11 . . . greater x
Answer:
Step-by-step explanation:
since
,