The Republic Bank has $2 million in deposits and $250,000 in reserves. If the required reserve ratio is 10%, excess reserves are equal to:

Name: The Republic Bank has $2 million in deposits and $250,000 in reserves. If the required reserve ratio is 10%, excess reserves are equal to:
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The required reserves are 10% of $2 million, which is $200,000. The bank has $250,000 in reserves, so the excess reserves are $250,000 - $200,000 = $50,000.

The Republic Bank Has $2 Million in Deposits and $250,000