A commercial bank has no excess reserves until a depositor places $2,000 in cash in the bank. The reserve ratio
is 10 percent. The bank then lends $1,500 to a borrower. As a consequence of these transactions, the bank'scess reserves are

Question

Quizplus · Accepted Answer

The Answer of A commercial bank has no excess reserves until a depositor places $2,000 in cash in the bank. The reserve ratio
is 10 percent. The bank then lends $1,500 to a borrower. As a consequence of these transactions, the bank'scess reserves are

A Commercial Bank Has No Excess Reserves Until a Depositor