The following balance sheet is for the First Edmonton Bank.Assume that the desired reserve ratio is 10%.All figures are in millions. Refer to the above information.Suppose that customers of this bank collectively write cheques for cash at the bank in the amount of $1 million.As a result, the bank's excess reserves diminish to:
A)$0
B)$6 million.
C)$9 million.
D)$9.1 million.

Question

The following balance sheet is for the First Edmonton Bank.Assume that the desired reserve ratio is 10%.All figures are in millions.  Refer to the above information.Suppose that customers of this bank collectively write cheques for cash at the bank in the amount of $1 million.As a result, the bank's excess reserves diminish to:
A)$0 
B)$6 million. 
C)$9 million. 
D)$9.1 million.

Quizplus · Accepted Answer

The Answer of The following balance sheet is for the First Edmonton Bank.Assume that the desired reserve ratio is 10%.All figures are in millions.  Refer to the above information.Suppose that customers of this bank collectively write cheques for cash at the bank in the amount of $1 million.As a result, the bank's excess reserves diminish to:
A)$0 
B)$6 million. 
C)$9 million. 
D)$9.1 million.

The Following Balance Sheet Is for the First Edmonton Bank