Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.

-Refer to the above data. Assuming the bank loans out all of its remaining excess reserves as a checkable deposit and has a check cleared against it for that amount, the bank will now have excess reserves of:

Question

Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.
 
-Refer to the above data. Assuming the bank loans out all of its remaining excess reserves as a checkable deposit and has a check cleared against it for that amount, the bank will now have excess reserves of:

Quizplus · Accepted Answer

When a bank loans out its excess reserves and a check is cleared against it, the bank's reserves decrease by the amount of the loan, leaving it with no excess reserves.

Use the Following Balance Sheet for the ABC National Bank