Suppose a bank has $2,000,000 in deposits,a minimum reserve requirement of 10 percent,and bank reserves of $250,000.Then the bank has excess reserves of:

Name: Suppose a bank has $2,000,000 in deposits,a minimum reserve requirement of 10 percent,and bank reserves of $250,000.Then the bank has excess reserves of:
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The bank is required to hold 10% of $2,000,000 in deposits as reserves, which amounts to $200,000. Since it has $250,000 in reserves, the excess reserves are $250,000 - $200,000 = $50,000.

Suppose a Bank Has $2,000,000 in Deposits,a Minimum Reserve Requirement