If excess reserves are $10,000,demand deposits are $100,000,and the required reserve ratio is 10 percent,then total reserves are

Name: If excess reserves are $10,000,demand deposits are $100,000,and the required reserve ratio is 10 percent,then total reserves are
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

Total reserves are the sum of required reserves and excess reserves. Required reserves are 10% of demand deposits, which is $10,000. Adding the excess reserves of $10,000 gives total reserves of $20,000.

If Excess Reserves Are $10,000,demand Deposits Are $100,000,and the Required