Answered: 21. Republic Bank has $2 million in…

21. Republic Bank has $2 million in deposits and $250,000 in reserves. If the required reserve ratio is 10%, excess reserves are equal to: $200,000. $50,000. zero $450,000

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 9WNG

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Question

21.

Republic Bank has $2 million in deposits and $250,000 in reserves. If the required

reserve ratio is 10%, excess reserves are equal to:

$200,000.
$50,000.
zero
$450,000.

Definition Definition Minimum amount that a commercial bank must hold in liquid assets in order to fulfill central bank regulations.

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