The following table shows a T-account for Bank A in a new economy.

-Refer to the table above.What is the missing value for the amount of reserves that the bank has?

Question

The following table shows a T-account for Bank A in a new economy.
 
-Refer to the table above.What is the missing value for the amount of reserves that the bank has?

Quizplus · Accepted Answer

The bank has $10,000 in deposits and $12,150 in loans. The bank is required to hold 15% of deposits in reserves. So, the bank must hold $1,500 in reserves. The bank has $300 in excess reserves, so the total amount of reserves the bank has is $1,500 + $300 = $1,850.

The Following Table Shows a T-Account for Bank a in a New