Exhibit 19-7 Lower Walloon National Bank In Exhibit 19-7, if the required reserve ratio is 20 percent, and Mr. Brown deposits $10,000 in Lower Walloon National Bank. The Lower Walloon National bank has excess reserves of:

Question

Exhibit 19-7  Lower Walloon National Bank  In Exhibit 19-7, if the required reserve ratio is 20 percent, and Mr. Brown deposits $10,000 in Lower Walloon National Bank. The Lower Walloon National bank has excess reserves of:

Quizplus · Accepted Answer

The required reserve ratio is 20%, so the bank is required to hold 20% of Mr. Brown's $10,000 deposit, which is $2,000, as reserves. The bank has excess reserves of $8,000, which is the remaining amount after setting aside the required reserves of $2,000.

Exhibit 19-7 Lower Walloon National Bank in Exhibit 19-7, If