-The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The desired reserve ratio is 3 percent. After Barney's deposit, but before any other actions occur, MegaBank will have unplanned reserves of
A) $15.00.
B) $33.00.
C) $48.50.
D) $50.00.

Question

-The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The desired reserve ratio is 3 percent. After Barney's deposit, but before any other actions occur, MegaBank will have unplanned reserves of
A) $15.00. 
B) $33.00. 
C) $48.50. 
D) $50.00.

Quizplus · Accepted Answer

When Barney deposits $50, the bank's total reserves increase by $50. With a 3% reserve ratio, the bank needs to keep $1.50 ($50 * 3%) as required reserves. The unplanned reserves are the excess over this amount, which is $48.50 ($50 - $1.50).

-The Above Table Gives the Initial Balance Sheet for Mega