Exhibit 19-2 Balance Sheet of Springfield National Bank In Exhibit 19-2, if Springfield National's customers write checks for $200 and the required reserve ratio is 20 percent, then its required reserves fall to:

Question

Exhibit 19-2  Balance Sheet of Springfield National Bank  In Exhibit 19-2, if Springfield National's customers write checks for $200 and the required reserve ratio is 20 percent, then its required reserves fall to:

Quizplus · Accepted Answer

The required reserves are calculated by multiplying the checkable deposits by the required reserve ratio. In this case, the checkable deposits are $1,000 ($800 in demand deposits + $200 in other checkable deposits) and the required reserve ratio is 20 percent. Therefore, the required reserves are $200 ($1,000 x 0.20). If customers write $200 in checks, the checkable deposits fall to $800 and the required reserves fall to $160 ($800 x 0.20).

Exhibit 19-2 Balance Sheet of Springfield National Bank in Exhibit