Suppose that a bank receives a $500 deposit and holds $25 of that as required reserves. In this case, the reserve requirement is _____ percent, and the excess reserves are:

Name: Suppose that a bank receives a $500 deposit and holds $25 of that as required reserves. In this case, the reserve requirement is _____ percent, and the excess reserves are:
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The reserve requirement is 5% ($25/$500 = 0.05). The excess reserves are $475 ($500 - $25 = $475).

Suppose That a Bank Receives a $500 Deposit and Holds