-Refer to Table 10-2. If the reserve requirement is 10 percent and then someone deposits $50,000 into the bank, what is the bank's reserve position?
A) It will have $75,000 in excess reserves.
B) It will have $52,500 in excess reserves.
C) It will need to raise reserves by $5000.
D) It will have excess reserves of $2500.

Question

-Refer to Table 10-2. If the reserve requirement is 10 percent and then someone deposits $50,000 into the bank, what is the bank's reserve position?
A) It will have $75,000 in excess reserves. 
B) It will have $52,500 in excess reserves. 
C) It will need to raise reserves by $5000. 
D) It will have excess reserves of $2500.

Quizplus · Accepted Answer

The Answer of 
-Refer to Table 10-2. If the reserve requirement is 10 percent and then someone deposits $50,000 into the bank, what is the bank's reserve position?
A) It will have $75,000 in excess reserves. 
B) It will have $52,500 in excess reserves. 
C) It will need to raise reserves by $5000. 
D) It will have excess reserves of $2500.