Answer the next question on the basis of the following table for a commercial bank or thrift:

-Refer to the above table. When the legal reserve ratio is 25 percent, the excess reserves of this single bank are:

Question

Answer the next question on the basis of the following table for a commercial bank or thrift:
 
-Refer to the above table. When the legal reserve ratio is 25 percent, the excess reserves of this single bank are:

Quizplus · Accepted Answer

The legal reserve ratio is 25%, so the bank must keep 25% of its deposits as reserves. If the bank has no excess reserves, it means all reserves are required reserves, hence excess reserves are $0.

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