Refer to the information provided in Table 25.2 below to answer the question(s) that follow.
Table 25.2
-Refer to Table 25.2. First Commercial Bank's excess reserves equal $________.

Question

Refer to the information provided in Table 25.2 below to answer the question(s) that follow.
Table 25.2 
-Refer to Table 25.2. First Commercial Bank's excess reserves equal $________.

Quizplus · Accepted Answer

Excess reserves can be calculated as total reserves minus required reserves. In this case, First Commercial Bank's total reserves are $7,500,000 and their required reserves are $6,900,000. Therefore, their excess reserves equal $600,000 (Option B).

Refer to the Information Provided in Table 25