Bank A has checkable deposits of $900,000 and total reserves of $112,000.If the required reserve ratio is 12 percent,the bank has excess reserves of

Name: Bank A has checkable deposits of $900,000 and total reserves of $112,000.If the required reserve ratio is 12 percent,the bank has excess reserves of
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Question

Quizplus · Accepted Answer

The required reserves are 12% of $900,000, which is $108,000. The bank's total reserves are $112,000, so the excess reserves are $112,000 - $108,000 = $4,000.

Bank a Has Checkable Deposits of $900,000 and Total Reserves