Refer to the information provided in Table 10.3 below to answer the questions that follow.
Table 10.3
-Refer to Table 10.3. People's Bank excess reserves are $________.
A) 100,000
B) 200,000
C) 300,000
D) 400,000

Question

Refer to the information provided in Table 10.3 below to answer the questions that follow.
Table 10.3 
-Refer to Table 10.3. People's Bank excess reserves are $________.
A) 100,000 
B) 200,000 
C) 300,000 
D) 400,000

Quizplus · Accepted Answer

Excess reserves are the amount of reserves held by a bank over the required reserves. In this case, People's Bank has total reserves of $1,500,000 and required reserves of $1,300,000. Thus, excess reserves are $200,000 (total reserves - required reserves = excess reserves). Therefore, the correct answer is B) 200,000.

Refer to the Information Provided in Table 10