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 $8,150 in loans. The bank is required to hold 10% of deposits in reserves, which is $1,000. The bank also has $2,850 in excess reserves. Therefore, the total amount of reserves that the bank has is $1,000 + $2,850 = $3,850.

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