Table 13-2 Refer to Table 13-2. The reserve requirement is 10 percent and then someone deposits an additional $50,000 into the bank, then if the bank takes no other action it will
A) have $65,000 in excess reserves.
B) have $55,000 in excess reserves.
C) need to raise an additional $5,000 of reserves to meet the reserve requirement
D) none of the above is correct.

Question

Table 13-2  Refer to Table 13-2. The reserve requirement is 10 percent and then someone deposits an additional $50,000 into the bank, then if the bank takes no other action it will
A) have $65,000 in excess reserves. 
B) have $55,000 in excess reserves. 
C) need to raise an additional $5,000 of reserves to meet the reserve requirement 
D) none of the above is correct.

Quizplus · Accepted Answer

The Answer of Table 13-2  Refer to Table 13-2. The reserve requirement is 10 percent and then someone deposits an additional $50,000 into the bank, then if the bank takes no other action it will
A) have $65,000 in excess reserves. 
B) have $55,000 in excess reserves. 
C) need to raise an additional $5,000 of reserves to meet the reserve requirement 
D) none of the above is correct.