Solved

Suppose a Bank Has $1,500,000 in Deposits and the Desired

Question 264

Multiple Choice
Suppose a bank has $1,500,000 in deposits and the desired reserve ratio is 12 percent. If the bank is currently holding $200,000 in reserves, the excess reserves are equal to

Suppose a bank has $1,500,000 in deposits and the desired reserve ratio is 12 percent. If the bank is currently holding $200,000 in reserves, the excess reserves are equal to


A) zero.
B) $180,000.
C) $120,000.
D) $20,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q243: Commercial banks are able to create money

Q260: Banks create money whenever they
A) accept a

Q261: Suppose that a bank begins with $500

Q262: TBK Bank Balance Sheet
Assets Liabilities

Q267: -The above table</p></div><svg width=

Q268: -The above table</p></div><svg width=

Q268: A bank cannot create money unless its

Q269: -The above table</p></div><svg width=

Q277: -The above table</p></div><svg width=

Q278: You withdraw $2,000 from your account. Your

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents