A bank has reserves of $50, deposits of $100, loans of $20, and government securities of $30. Assume the desired reserve ratio is 20 percent.
a)How much does the bank have in excess reserves?
b)What can the bank do with its excess reserves? Name two options.

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The Answer of A bank has reserves of $50, deposits of $100, loans of $20, and government securities of $30. Assume the desired reserve ratio is 20 percent.
a)How much does the bank have in excess reserves?
b)What can the bank do with its excess reserves? Name two options.

A Bank Has Reserves of $50, Deposits of $100, Loans