The First National Bank of Townville has $125,000 in U.S. government securities, $200,000 in savings accounts, $300,000 in checking accounts, $50,000 in its reserve account at the Fed, $10,000 of currency in its vault, and loans of $250,000
What is the amount of its reserves?
Reserves include the bank's deposit in its reserve account at the Fed and the currency in its vault. Therefore, the First National Bank of Townville has $50,000 + $10,000 = $60,000 in reserves.
Economics
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