13. If a bank has $4,000 of checkable deposits (DD), $3,000 in loans, and a required reserve ratio (rT) of 10 percent. The bank's excess reservės are A) $1,000. DD = 400o 3000 =1oans B) $600. C) $1,400 D) $3,400

13. If a bank has $4,000 of checkable deposits (DD), $3,000 in loans, and a required reserve ratio (rT) of 10 percent. The bank's excess reservės are A) $1,000. DD = 400o 3000 =1oans B) $600. C) $1,400 D) $3,400

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

13. If a bank has $4,000 of checkable deposits (DD), $3,000 in loans, and a required reserve ratio
(rT) of 10 percent. The bank's excess reserves are
A) $1,000.
DD= 400o
3000 = 1oans
B) $600.
C) $1,400
D) $3,400

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