Suppose the banks in the Federal Reserve System have $200 billion in transactions accounts,the required reserve ratio is 0.15,and there are no excess reserves in the system.If the required reserve ratio is changed to 0.10,the amount of excess reserves would be

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Initially, with a required reserve ratio of 0.15, banks need to hold $30 billion in reserves ($200 billion * 0.15). If the required reserve ratio is lowered to 0.10, they now need to hold $20 billion ($200 billion * 0.10). This change creates $10 billion in excess reserves ($30 billion - $20 billion).

Suppose the Banks in the Federal Reserve System Have $200