The commercial banking system has excess reserves of $3,000. Then new loans of $40,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be ___%
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A: deposit Amount = 10 million Reserve ratio = 15%
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A: Answer is given below
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A: Money Multiplier's formula is - Money multiplier = 1 / Requires Reserve Ratio i.e. m = 1 / r
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A:
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Q: Required reserves with a bank equal
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A: Here we can calculate the excess reserve and choose the correct option which are as follow-
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The commercial banking system has
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- What is the difference between digital banking and branch banking?Your bank has the following balance sheet: Assets Liabilites Reserves $50 million Checkable Deposits $200 million Securites $50 million Bank Capital $50 million Loans $150 million If the required reserve ratio is 10%, what possible actions can the bank manager take if there is an unexpected deposit outflow of $50 million?Banking sector is important part in any economy. Choose a country and conduct a brief SWOT analysis for their banking industry. Discuss the strengths, weaknesses, opportunities, and threats related to the banking industry in the selected country, now and in the future.