The current Fed Funds rate band is 0.0%/year - 0.25%/year. If the Federal reserve wanted to set their policy rate to 0.25%/year using a 3-day reverse repo transaction, how much would a commercial bank pay to buy back $43 million worth of bonds?
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The current Fed Funds rate band is 0.0%/year - 0.25%/year. If the Federal reserve wanted to set their policy rate to 0.25%/year using a 3-day reverse repo transaction, how much would a commercial bank pay to buy back $43 million worth of bonds?
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- What will be the demand deposit if the cash reserve ratio is 28.5% and the cash reserve are 1200?The logic of the liquidity risk constraints on the balance sheet growth of the banking sector as a whole, and how the central bank’s elastic currency policy removes these constraints and so encourages excessive growth and solvency risk escalation. (5/100)Find the value of money creation when the initial deposit are 20,000 and the legal reserve ratio is 20%
- Why do bonds trade at prices different than parCalculate the initial deposit if total money creation is $25,000 and the legal reserve ratio is 18%A banking institution has $80000 in deposits. There are $6,000 in actual reserves, of which $2,000 are compliance with generally accepted accounting. Describe the RRR.