Table 13.1 XYZ Bank Balance Sheet
Refer to Table 13.1.With a required reserve ratio of 12 percent,XYZ Bank would have excess reserves of

Question

Table 13.1 XYZ Bank Balance Sheet
 Refer to Table 13.1.With a required reserve ratio of 12 percent,XYZ Bank would have excess reserves of

Quizplus · Accepted Answer

Excess reserves are the funds held by the bank above and beyond its required reserves. To calculate the excess reserves, we need to multiply the total deposits by the reserve ratio (12%). 
Excess Reserves = Total Deposits x Reserve Ratio 
Excess Reserves = $600,000 x 0.12 
Excess Reserves = $72,000 
However, the bank already has $20,000 in reserves, so we need to deduct that from the excess reserves. 
Excess Reserves = $72,000 - $20,000 
Excess Reserves = $52,000 
Hence, the correct answer is option C, which is $52,000.