The following table lists some statistics on Boring Bank.

-Refer to the table above.If Boring Bank faces a required reserve ratio of 10 percent and has twice as many excess reserves as required reserves,how much in total reserves does the bank have?

Question

The following table lists some statistics on Boring Bank.
 
-Refer to the table above.If Boring Bank faces a required reserve ratio of 10 percent and has twice as many excess reserves as required reserves,how much in total reserves does the bank have?

Quizplus · Accepted Answer

Required reserves = $10,000 x 0.1 = $1,000 
Excess reserves = Required reserves x 2 = $2,000 
Total reserves = Required reserves + Excess reserves = $1,000 + $2,000 = $3,000 
Therefore, Boring Bank has $60 in total reserves.

The Following Table Lists Some Statistics on Boring Bank