The table below shows the data (in millions) for Wells Fargo Bank in September 2007 and September 2008.Suppose that the required reserve ratio is 3 percent. $$\begin{array} { | c | c | c | }
\hline & 2007 & 2008 \
\hline \text { Loans } & 79 & 100 \
\hline \text { Reserves } & 11 & 11 \
\hline \text { Deposits } & 247 & 266 \
\hline
\end{array}$$
The data show that Wells Fargo

Question

The table below shows the data (in millions) for Wells Fargo Bank in September 2007 and September 2008.Suppose that the required reserve ratio is 3 percent. $$\begin{array} { | c | c | c | } 
\hline & 2007 & 2008 \
\hline \text { Loans } & 79 & 100 \
\hline \text { Reserves } & 11 & 11 \
\hline \text { Deposits } & 247 & 266 \
\hline
\end{array}$$
The data show that Wells Fargo

Quizplus · Accepted Answer

The required reserves in 2007 were 7.41 million (3% of 247 million), leaving excess reserves of 3.59 million. In 2008, required reserves were 7.98 million (3% of 266 million), leaving excess reserves of 3.02 million. Thus, Wells Fargo had fewer excess reserves in 2008.

The Table Below Shows the Data (In Millions) for Wells