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Consider again the same economy with two banks: Bank One and Bank Two. Partial balance...

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Accounting

Consider again the same economy with two banks: Bank One and Bank Two. Partial balance sheet information for each is given below:

Bank One:

$120,000 demand deposits

$15,000 total reserves on hand

$30,000 equity

Bank Two:

$3000 Deposit in the Fed

$10,000 total reserves on hand

$8000 US government bonds

$80,000 demand deposits

In addition to the above information, members of the public hold $15,000 in cash, and the central bank requires that banks hold 10% of checking as required reserves (as in all class examples).

Calculate the amount of cash held within Bank Two.

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