If the required reserve ratio were 10%, how much of this bank's reserves would qualify as excess reserves? A) 200,000 B) 300,000 C) 400,000 D) 550,000 E) 3,000,000

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
Section: Chapter Questions
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If the required reserve ratio were 10%, how much of this bank's reserves would qualify as excess reserves?

A) 200,000

B) 300,000

C) 400,000

D) 550,000

E) 3,000,000

ASSETS
cash in the vault:
US treasury bonds:
loans:
Building:
TOTALS:
O $200,000
$300,000
$400,000
If the required reserve ratio were 10%, how much of this bank's reserves would qualify as excess reserves?
$550,000
LIABILITIES & NET WORTH
$4,000,000
O $3,000,000
$800,000 demand deposits:
$300,000
$2,400,000
$1,000,000
$4,500,000 TOTALS:
capital stock:
$500,000
$4,500,000
Transcribed Image Text:ASSETS cash in the vault: US treasury bonds: loans: Building: TOTALS: O $200,000 $300,000 $400,000 If the required reserve ratio were 10%, how much of this bank's reserves would qualify as excess reserves? $550,000 LIABILITIES & NET WORTH $4,000,000 O $3,000,000 $800,000 demand deposits: $300,000 $2,400,000 $1,000,000 $4,500,000 TOTALS: capital stock: $500,000 $4,500,000
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