2-A bank has deposits of $ 6 000 000 , its total actual reserves are $1 200 000 and the legal reserve ratio is 0.12 . (a) What is the amount of reserves ? (b) What is the amount of excess reserves ? (c) If the reserve ratio changes to 0.10 what would be the effect on reserves and total actual reserves ,amount of excess reserves remaining the same?
2-A bank has deposits of $ 6 000 000 , its total actual reserves are $1 200 000 and the legal reserve ratio is 0.12 . (a) What is the amount of reserves ? (b) What is the amount of excess reserves ? (c) If the reserve ratio changes to 0.10 what would be the effect on reserves and total actual reserves ,amount of excess reserves remaining the same?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:2-A bank has deposits of $ 6 000 000 , its total actual reserves are $1 200 000 and the legal reserve
ratio is 0.12 .
(a) What is the amount of reserves ?
(b) What is the amount of excess reserves ?
(c) If the reserve ratio changes to 0.10 what would be the effect on reserves and total actual
reserves ,amount of excess reserves remaining the same ?
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