Exhibit 19-2 Balance Sheet of Springfield National Bank $$\begin{array} { | l l | l l | }
\hline { \text { Assets } } && { \text { Liabilities } } \
\hline \text { Total reserves } & \$ 500 & \text { Demand deposits } & \$ 1,000 \
\text { Loans } & \$ 500 & & \
\hline
\end{array}$$ 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 $$\begin{array} { | l l | l l | } 
\hline { \text { Assets } } && { \text { Liabilities } } \
\hline \text { Total reserves } & \$ 500 & \text { Demand deposits } & \$ 1,000 \
 \text { Loans } & \$ 500 & & \
\hline
\end{array}$$ 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 as 20% of the demand deposits. If customers write checks for $200, the demand deposits decrease to $800. Therefore, the required reserves are 20% of $800, which is $160.

Exhibit 19-2 Balance Sheet of Springfield National Bank In Exhibit 19-2, If Springfield National's Customers Write Checks for |