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There Are Zero Excess Reserves at All Banks and the Required

Question 49

Multiple Choice

There are zero excess reserves at all banks and the required reserve ratio is 20 percent.If a check for $100,000 on Bank ABC is deposited in Bank XYZ,then excess reserves at Bank ABC equal ________ and excess reserves at Bank XYZ equal ________.


A) -$20,000;+$80,000
B) -$100,000;+$80,000
C) -$80,000;+$100,000
D) -$80,000;+$80,000

Correct Answer:

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