If a bank with a required reserve ratio of 15 percent receives a deposit of $600, it now has a
A)$600 increase in excess reserves and no increase in required reserves.
B)$600 increase in required reserves and no increase in excess reserves.
C)$510 increase in excess reserves and a $90 increase in required reserves.
D)$90 increase in excess reserves and a $510 increase in required reserves.

Question

Quizplus · Accepted Answer

The required reserve is 15% of $600, which is $90. The remaining $510 is excess reserves.

If a Bank with a Required Reserve Ratio of 15