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  3. given the information below:      rd =

Given the information below:      rd = 10% Municipal Bonds = $11,700,000       Household CD’s = $32,250,000      Transactions Deposits = $72,150,000      Savings...

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Economics

Given the information below:

     rd = 10% Municipal Bonds =$11,700,000       Household CD’s= $32,250,000

     Transactions Deposits =$72,150,000      Savings Deposits =$125,250,000     Vault Cash =$4,160,000

     Secondary reserves =$14,000,000           Bankdeposits with the Fed = $22,500,000

Determine:

a) the level of required reserves, excess reserves, and thelevel of total reserves.

b) the maximum deposit outflow a bank can sustain without havingto acquire additional reserves.    

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