QUESTION 31LAST CHANCE BANK OF TOMBSTONEASSETScash in the vault:deposits at FedUS treasury bonds:loans:Building:TOTALS:BALANCE SHEETLIABILITIES &$900,000 demand deposits:$100,000$300,000$3,700,000$2,000,000 capital stock:$7,000,000TOTALS:31. If the required reserve ratio is 5%, what is the level of excess reserves this bank holds?a) $900,000b) $1,000,000c) $750,000d) $500,000e) $400,000NET WORTH$5,000,000$2,000,000$7,000,000

The required reserve ratio is the percentage of demand deposits that banks have to keep in reserve.…

Answered: 31. If the required reserve ratio is…

31. If the required reserve ratio is 5%, what is the level of excess reserves this bank holds? Oa) $900,000 Ob) $1,000,000 c) $750,000

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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