Asked by Grace Ferreira on Jun 30, 2024
Verified
Demand deposits $200 million
Time deposits:
Original maturity (less than 18 months): $100 million
Original maturity (18 months or more): $400 million
Use the information above to find the bank's required reserves.
Original Maturity
The initial fixed period for which a financial instrument, such as a bond or loan, is issued before it is due for repayment.
Required Reserves
The least amount of money that a bank is required to keep on hand as a safeguard for deposits, in compliance with the rules set by central bank authorities.
Demand Deposits
Bank account funds that are available on demand without any delay or penalties, like those in checking accounts.
- Ascertain the mandatory reserve amounts for a bank, factoring in its demand and time deposits.
- Examine the structure of bank deposits and their influence on the requirements for reserves.
- Enhance skills in conducting financial calculations associated with banking procedures.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
$10.7×0.0=$00$44.5×.03=$1,335,000$144,800,000×.10=$14,480,000‾Total $15,815,000\begin{array} { l } \$ 10.7 \times 0.0 = \$ \quad 00 \\\$ 44.5 \times .03 = \$ 1,335,000 \\\$ 144,800,000 \times . 10 = \underline{ \$ 14,480,000 } \\Total~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \$ 15,815,000 } \end{array}$10.7×0.0=$00$44.5×.03=$1,335,000$144,800,000×.10=$14,480,000Total $15,815,000
Learning Objectives
- Ascertain the mandatory reserve amounts for a bank, factoring in its demand and time deposits.
- Examine the structure of bank deposits and their influence on the requirements for reserves.
- Enhance skills in conducting financial calculations associated with banking procedures.