$\begin{array}{|l|l|}
\hline {\text { Assets }} &{\text { Liabilities }} \
\hline \text { Reserves } & \
\$ 400 & \text { Deposits } \
\text { Loans } & \$ 1,200 \
\$ 800 & \
\text { Total } & \text { Total } \
\$ 1,200 & \$ 1,200\
\hline
\end{array}$
-In the balance sheet above,the entries are in millions of dollars for the FBN Bank.If the desired reserve ratio equals 10 percent,FBN Bank has excess reserves of

Question

$\begin{array}{|l|l|}
\hline {\text { Assets }} &{\text { Liabilities }} \
\hline \text { Reserves } & \
\$ 400 & \text { Deposits } \
\text { Loans } & \$ 1,200 \
\$ 800 & \
\text { Total } & \text { Total } \
\$ 1,200 & \$ 1,200\
\hline 
\end{array}$ 
-In the balance sheet above,the entries are in millions of dollars for the FBN Bank.If the desired reserve ratio equals 10 percent,FBN Bank has excess reserves of

Quizplus · Accepted Answer

Excess reserves = Reserves - Required reservesRequired reserves = Deposits * Reserve ratio= $1,200 million * 10%= $120 millionExcess reserves = $400 million - $120 million= $280 million

-In the Balance Sheet Above,the Entries Are in Millions of \text