Bank ABC has checkable deposits of $415 million and total reserves of $50 million.The required reserve ratio is 9 percent.The bank has excess reserves of

Name: Bank ABC has checkable deposits of $415 million and total reserves of $50 million.The required reserve ratio is 9 percent.The bank has excess reserves of
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Question

Quizplus · Accepted Answer

The bank's required reserves are 9% of $415 million, which equals $37.35 million. Excess reserves are total reserves minus required reserves, so $50 million - $37.35 million = $12.65 million.

Bank ABC Has Checkable Deposits of $415 Million and Total