Multiple Choice
If a bank has deposits worth $800,000, total reserves worth $800,000, and the reserve ratio of 0.20, what is the value of excess reserves?
A) $620,000
B) $1,000,000
C) $1,160,000
D) $640,000
E) $160,000
Correct Answer:
Verified
Related Questions
Q61: Table 12.2 Q61: Assume that the reserve requirement is 10 Q65: Suppose the reserve requirement is 10 percent Q69: If a banking system receives an initial Q70: Assume that the reserve requirement is 10 Q71: The table given below records the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents