Assume that checkable deposits are $500 billion, desired excess reserves are 1 percent of deposits, the required reserve ratio is 10 percent, and the amount of reserves is $50 billion. What is the...

Assume that checkable deposits are $500 billion, desired excess reserves are 1 percent of deposits, the required reserve ratio is 10 percent, and the amount of reserves is $50 billion. What is the reserve need to maintain the existing reserve conditions?

What should the Trading Desk do if the fed funds rate falls below the targeted rate?