A Bank Reports Reserves of $100,000, Government Securities of $50,000

question 36

Essay

A bank reports reserves of $100,000, government securities of $50,000, loans of $750,000, and checkable deposits of $900,000. The desired reserve ratio is 10 percent. What is the amount of unplanned reserves for this bank? Show your work.

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Definitions:

Antibodies

Proteins produced by the immune system in response to an antigen, capable of binding specifically to that antigen to neutralize or destroy it.

Monocytes

A type of white blood cell part of the immune system, which differentiates into macrophages and dendritic cells to fight infection.

Phagocytes

Cells that protect the body by ingesting harmful foreign particles, bacteria, and dead or dying cells.

Granulocytes

A type of white blood cell that contains granules in its cytoplasm, involved in inflammatory and immune responses.