Suppose that a bank receives a $500 deposit and the required reserves are $10. In this case, the excess reserves are _____, and the reserve requirement is _____ percent.

Question

Quizplus · Accepted Answer

The excess reserves are calculated by subtracting the required reserves from the total deposit, which is $500 - $10 = $490. The reserve requirement percentage is calculated by dividing the required reserves by the total deposit and then multiplying by 100, which is ($10 / $500) * 100 = 2%.

Suppose That a Bank Receives a $500 Deposit and the Required