Bank A has checkable deposits of $900,000 and total reserves of $112,000.If the required reserve ratio is 8 percent,the bank has excess reserves of

Name: Bank A has checkable deposits of $900,000 and total reserves of $112,000.If the required reserve ratio is 8 percent,the bank has excess reserves of
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Quizplus · Accepted Answer

The bank's required reserves are 8% of $900,000, which equals $72,000. Since the bank has total reserves of $112,000, the excess reserves are $112,000 - $72,000 = $40,000.

Bank a Has Checkable Deposits of $900,000 and Total Reserves