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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 1MC
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F055cfb6d-bf4e-425a-a381-d6a65d3579ab%2Fe123d10c-6359-4d75-b2a2-8a6dd90df99c%2Fg0naczg_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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