Foundations Of Financial Institutions And MarketsTU Board 2079
Suppose the NRB's required reserve ratio is 12%. Bank A has a deposit of Rs. 200 million, while Bank B has Rs. 100 million. Bank A has reserve of Rs. 26 million and Bank B has reserve of Rs. 5…
10Suppose the NRB's required reserve ratio is 12%. Bank A has a deposit of Rs. 200 million, while Bank B has Rs. 100 million. Bank A has reserve of Rs. 26 million and Bank B has reserve of Rs. 5 million. a. What will be required reserve of Bank A and Bank B? b. What will be the excess or short reserve of Bank A and Bank B? c. Why do central banks set reserve ratio?
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