-In the balance sheet for the FBN bank above, the entries are in millions of dollars. If the desired reserve ratio equals 10 percent, FBN Bank has excess reserves of

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Quizplus · Accepted Answer

Excess reserves = Required reserves - Actual reservesRequired reserves = 10% of Deposits = 0.1 * 2,600 = 260Actual reserves = Cash + Due from banks = 280 + 80 = 360Excess reserves = 360 - 260 = $280 million

-In the Balance Sheet for the FBN Bank Above, the Entries