Table 29-5.
Bank of Kopeka

-Refer to Table 29-5.If the Fed's reserve requirement is 9 percent,then what quantity of excess reserves does the Bank of Kopeka now hold?
A) $200
B) $250
C) $400
D) $1,000

Question

Table 29-5.
Bank of Kopeka
 
-Refer to Table 29-5.If the Fed's reserve requirement is 9 percent,then what quantity of excess reserves does the Bank of Kopeka now hold?
A) $200 
B) $250 
C) $400 
D) $1,000

Quizplus · Accepted Answer

The Bank of Kopeka's excess reserves are calculated by subtracting required reserves from total reserves. With a reserve requirement of 9%, the required reserves are 9% of deposits. If the total reserves exceed this amount, the difference is the excess reserves.

Table 29-5. Bank of Kopeka