Exhibit 19-4 Balance sheet of Tucker National Bank $$\begin{array} { | l r | l l | }
\hline { \text { Assets } } &&{ \text { Liabilities } } \
\hline \text { Required reserves } & \$ 4,000 & \text { Checkable deposits } & \$ 20,000 \
\text { Excess reserves } & 16,000 & & \
\text { Loans } &{ 0 } & \
\text { Total } & \$ 20,000 & \text { Total } & \$ 20,000 \
\hline
\end{array}$$ Suppose Connie Rich deposits $500 in the bank in Exhibit 19-4. The result would be that the bank must increase its required reserves to:

Question

Exhibit 19-4 Balance sheet of Tucker National Bank $$\begin{array} { | l r | l l | } 
\hline  { \text { Assets } } &&{ \text { Liabilities } } \
\hline \text { Required reserves } & \$ 4,000 & \text { Checkable deposits } & \$ 20,000 \
\text { Excess reserves } & 16,000 & & \
 \text { Loans } &{ 0 } & \
\text { Total } & \$ 20,000 & \text { Total } & \$ 20,000 \
\hline
\end{array}$$ Suppose Connie Rich deposits $500 in the bank in Exhibit 19-4. The result would be that the bank must increase its required reserves to:

Quizplus · Accepted Answer

The required reserve ratio can be calculated from the initial data: $4,000 is the required reserve on $20,000 of checkable deposits, which is a 20% reserve ratio. When Connie Rich deposits $500, the new total of checkable deposits becomes $20,500. 20% of $20,500 is $4,100, which means the required reserves must increase to $4,100.

Exhibit 19-4 Balance Sheet of Tucker National Bank Suppose Connie Rich Deposits $500 in the Bank in Exhibit