Suppose that a bank has checkable deposits of $500, loans of $400 and reserves of $100. If

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Suppose that a bank has checkable deposits of $500, loans of $400 and reserves of $100.

If the required reserve ratio is 6%, what are this bank's excess reserves?

(a) $70

(b) $60

(d) $30

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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Question Posted: Apr 12, 2012 05:47 AM

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Suppose that a bank has checkable deposits of $500, loans of $400 and reserves of $100. If

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Money, Banking, and the Financial System

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