The following balance sheet shows the assets and liabilities of the ABC National Bank.Assume the desired reserve ratio is 20 percent.

-Refer to the above information.After the transaction described in the previous question is completed,the bank will now have excess reserves of:

Question

The following balance sheet shows the assets and liabilities of the ABC National Bank.Assume the desired reserve ratio is 20 percent.
 
-Refer to the above information.After the transaction described in the previous question is completed,the bank will now have excess reserves of:

Quizplus · Accepted Answer

Excess reserves are calculated by subtracting required reserves from total reserves. If the bank has no excess reserves after the transaction, it means all reserves are required.

The Following Balance Sheet Shows the Assets and Liabilities of the ABC