If Bank A holds $200 in reserves, deposits are $1000, and the desired reserve ratio is 15 percent, how much are excess reserves?
A) zero, because banks never hold excess reserves
B) $150
C) $200
D) $50
Correct Answer:
Verified
Q263: The banking system in the United States
Q264: Suppose a bank has $1,500,000 in deposits
Q265: If the desired reserve ratio is 3
Q266: A bank with $100 million in deposits
Q267: Commercial banks are able to create money
Q269: Excess reserves are
A) liquidity funds minus actual
Q270: When bank deposits increase from $1 million
Q271: The difference between actual reserves and required
Q272: Excess reserves are equal to
A) actual reserves
Q273: Suppose that a bank begins with $500
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