Suppose a bank has $200,000 in deposits,a required reserve ratio of 15 percent,and total reserves of $100,000.Then it has excess reserves of

Name: Suppose a bank has $200,000 in deposits,a required reserve ratio of 15 percent,and total reserves of $100,000.Then it has excess reserves of
Brand: Quizplus
Rating: 4.9 (65 reviews)

Question

Quizplus · Accepted Answer

Excess reserves = Total reserves - Required reserves= $100,000 - (0.15 * $200,000)= $100,000 - $30,000= $70,000

Suppose a Bank Has $200,000 in Deposits,a Required Reserve Ratio