If Fifth Third Bank had actual reserves of $1 billion and required reserves of $1.1 billion,its excess reserves would be

Name: If Fifth Third Bank had actual reserves of $1 billion and required reserves of $1.1 billion,its excess reserves would be
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

Excess reserves are calculated as actual reserves minus required reserves. In this case, $1 billion (actual reserves) - $1.1 billion (required reserves) = -$100 million, indicating a shortfall rather than excess reserves.

If Fifth Third Bank Had Actual Reserves of $1 Billion