Suppose the reserve requirement is 10%. If First National Bank has $100,000 in vault cash, $200,000 in deposit at the Fed, and the required reserves are $100,000, it has excess reserves of:
A) 0
B) $10,000
C) $20,000
D) $100,000
E) $200,000

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The Answer of Suppose the reserve requirement is 10%. If First National Bank has $100,000 in vault cash, $200,000 in deposit at the Fed, and the required reserves are $100,000, it has excess reserves of:
A) 0
B) $10,000
C) $20,000
D) $100,000
E) $200,000

Suppose the Reserve Requirement Is 10