A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required
Question:
A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required reserve ratio is 10 percent. How big are the bank’s excess reserves?
a. $100 million
b. $88 million
c. $12 million
d. $2 million
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
Question Posted: