Refer to the information provided in Table 10.2 below to answer the questions that follow.
Table 10.2
-Refer to Table 10.2. First Commercial Bank's excess reserves equal $________.
A) 200,000
B) 600,000
C) 1,000,000
D) 1,500,000

Question

Refer to the information provided in Table 10.2 below to answer the questions that follow.
Table 10.2 
-Refer to Table 10.2. First Commercial Bank's excess reserves equal $________.
A) 200,000 
B) 600,000 
C) 1,000,000 
D) 1,500,000

Quizplus · Accepted Answer

Excess reserves can be calculated as total reserves minus required reserves. In this case, total reserves is $4,500,000 and required reserves are $3,900,000, so excess reserves equal $600,000. Therefore, the answer is B.

Refer to the Information Provided in Table 10