(1)

Refer to Table 3. The reserve requirement is 10 percent and then someone makes a withdrawal of $5,000 from his account at the bank, then if the bank takes no other action it will

Group of answer choices

have $5,500 in excess reserves.

have $10,000 in excess reserves.

have $5,000 in excess reserves.

have $10,500 in excess reserves.

have $55,000 in excess reserves.

Transcribed Image Text:

Table 3 Hometown Bank Assets Reserves Loans $25,000 $125,000 Liabilities Deposits $150,000 Table 3 Hometown Bank Assets Reserves Loans $25,000 $125,000 Liabilities Deposits $150,000

Answer rating: 100% (QA)

Solution Ans1 have 10500 in excess reserv... View the full answer