Exhibit 19-4 Balance sheet of Tucker National Bank

-Suppose Connie Rich deposits $500 in the bank in Exhibit 19-4.The result would be that the bank must increase its required reserves to:

Question

Exhibit 19-4 Balance sheet of Tucker National Bank
 
-Suppose Connie Rich deposits $500 in the bank in Exhibit 19-4.The result would be that the bank must increase its required reserves to:

Quizplus · Accepted Answer

The required reserve ratio is 10%, so the bank must increase its required reserves by $500 x 0.10 = $50. The bank's total required reserves will then be $4,100 + $50 = $4,150.

Exhibit 19-4 Balance Sheet of Tucker National Bank