Table 16-1
$\begin{array}{|c|c|}
\hline \text { Assets } & \text { Liabilities } \
\hline \text { Reserves }+\$ 4,000 & \text { Deposits }+\$ 4,000 \
\hline
\end{array}$
-Refer to Table 16-1.Suppose a transaction changes a bank's balance sheet as indicated in the T-account,and the required reserve ratio is 10 percent.As a result of the transaction,the bank has excess reserves of

Question

Table 16-1
 $\begin{array}{|c|c|}
\hline \text { Assets } & \text { Liabilities } \
\hline \text { Reserves }+\$ 4,000 & \text { Deposits }+\$ 4,000 \
\hline
\end{array}$
-Refer to Table 16-1.Suppose a transaction changes a bank's balance sheet as indicated in the T-account,and the required reserve ratio is 10 percent.As a result of the transaction,the bank has excess reserves of

Quizplus · Accepted Answer

The bank's reserves increased by $4,000, and with a 10% reserve requirement, it needs to hold $400 in required reserves. Therefore, the excess reserves are $4,000 - $400 = $3,600.

Table 16-1 -Refer to Table 16-1