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

Name: -Refer to Table 13.1.With a required reserve ratio of 12 percent,XYZ Bank would have excess reserves of
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

Excess reserves are calculated as total reserves minus required reserves. In this case, total reserves are $260,000 and required reserves are $208,000 (12% of $1.6 million in deposits). Therefore, excess reserves are $52,000 ($260,000 - $208,000).