Suppose you found $2000 hidden in your mattress and deposited it in a demand deposit account at your bank.If the desired reserve ratio was 25 percent,how much would the deposit directly create in excess reserves?
A) $2500
B) $2000
C) $1500
D) $500
Correct Answer:
Verified
Q85: Suppose you found $1000 hidden in your
Q86: Scenario 11-1
A bank's assets consist of $500
Q87: If a bank gets a $100 000
Q88: Scenario 11-2
A bank's assets consist of $1
Q89: Scenario 11-2
A bank's assets consist of $1
Q91: Suppose you found $3000 hidden in your
Q92: A bank receives a demand deposit of
Q93: Suppose you found $10 000 hidden under
Q94: Scenario 11-1
A bank's assets consist of $500
Q95: Scenario 11-1
A bank's assets consist of $500
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