$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}
\hline \text { Reserves } & \$ 500 &\text { Deposits }&\$5,000\\text { Loans }&\$2,500\
\text { Total } & \$ 1,000&\text { Total }&\$3,000 \
\hline
\end{array}$
-The table above shows the balance sheet for Ralph?s Bank. If the desired reserve ratio is 15 percent, Ralph?s Bank has excess reserves of ___________.
A) $2,500
B) $50
C) $3,000
D) $500

Question

$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}
\hline \text { Reserves } & \$ 500 &\text { Deposits }&\$5,000\\text { Loans }&\$2,500\
\text { Total } & \$ 1,000&\text { Total  }&\$3,000 \
\hline
\end{array}$
-The table above shows the balance sheet for Ralph?s Bank. If the desired reserve ratio is 15 percent, Ralph?s Bank has excess reserves of ___________.
A) $2,500
B) $50
C) $3,000
D) $500

Quizplus · Accepted Answer

The required reserves are 15% of $5,000, which is $750. Since the bank has $500 in reserves, it has a shortfall of $250, not excess reserves.

Assets Liabilities \text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities } Assets Liabilities -The Table Above Shows the Balance Sheet for Ralph?s Bank

$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$ -The Table Above Shows the Balance Sheet for Ralph?s Bank