The Bank of Dallas has excess reserves of $30 million, deposits of $180 million, and the required reserve ratio is 10%. $48 million is the value of this bank's total reserves. $30 million is invested in loans and bonds.
Here, reserve required to be maintained is $180*10% = $18million. Given the excess reserve is $3o million. Therefore, the total value of this bank reserve is $48 million. And the excess reserve i.e. $30 million should be invested in loans and bonds.
Bank reserve are calculated by multiplying its total deposits by the reserve ratio. Therefore $18 million should be reserve required. And excess should be invested in loans and bonds.
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