Suppose a bank has $1,500,000 in deposits and the desired reserve ratio is 12 percent. If the bank is currently holding $200,000 in reserves, the excess reserves are equal to
A) zero.
B) $20,000.
C) $40,000.
D) $120,000.

Question

Quizplus · Accepted Answer

The Answer of Suppose a bank has $1,500,000 in deposits and the desired reserve ratio is 12 percent. If the bank is currently holding $200,000 in reserves, the excess reserves are equal to
A) zero.
B) $20,000.
C) $40,000.
D) $120,000.

Suppose a Bank Has $1,500,000 in Deposits and the Desired