Question

ngus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 99​%, and reserves are currently ​$2727 million. The amount of deposits is ​$300300 million. ​(Round your response to one decimal​ place.) The reserve shortage created by a deposit outflow of ​$55 million is ​$negative 4.55−4.55 million. ​(Round your response to two decimal​ places.) The cost of the reserve shortage if Angus Bank borrows in the federal funds market​ (assume the federal funds rate is 0.250.25​%) is ​$

Answer 1

312.5 million

-3.68 million

11040

Step-by-step explanation:

The amount of deposits is ​ ​$312.5 million

The reserve shortage created by deposit outflow of 4 million is - ​$3.68 million

The cost of the reserve shortage if Angus Bank borrows in the federal funds market is (federal funds rate is 0.3%) is ​$11040