-The above table gives the initial balance sheet for Mini Bank. If the bank's desired reserve ratio is 10 percent, how much does this bank have in excess reserves?

Question

Quizplus · Accepted Answer

The bank's total reserves are $100. With a desired reserve ratio of 10%, the required reserves are 10% of $400 (total deposits), which is $40. Therefore, excess reserves are $100 - $40 = $60.

-The Above Table Gives the Initial Balance Sheet for Mini