Futures Bank has $5,000 in excess reserves and a reserve ratio of 10%.Now suppose Futures Bank makes a loan of $5,000 to Sandra and she writes a cheque to Scott who a)deposits the cheque into his account at Futures Bank.What is the amount of excess reserves for Futures Bank? Explain.b)deposits the cheque into his account at Swaps Bank.What is the amount of excess reserves for Futures Bank? Explain.

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The Answer of Futures Bank has $5,000 in excess reserves and a reserve ratio of 10%.Now suppose Futures Bank makes a loan of $5,000 to Sandra and she writes a cheque to Scott who a)deposits the cheque into his account at Futures Bank.What is the amount of excess reserves for Futures Bank? Explain.b)deposits the cheque into his account at Swaps Bank.What is the amount of excess reserves for Futures Bank? Explain.

Futures Bank Has $5,000 in Excess Reserves and a Reserve