# 4. If a bank has $20,000 in deposits, and $2.500 in reserves, and if rr=10%, e=2.5% and c=15%, how much excess reserves does the bank have? Be clear about whether this is positive or negative. #5. If a bank has $20,000 in deposits, and $2,500 in reserves, and if rr=10%, e=2.5% and c=15%, how much currency is in circulation? Be clear about whether this is positive or negative.

# 4. If a bank has $20,000 in deposits, and $2.500 in reserves, and if rr=10%, e=2.5% and c=15%, how much excess reserves does the bank have? Be clear about whether this is positive or negative. #5. If a bank has $20,000 in deposits, and $2,500 in reserves, and if rr=10%, e=2.5% and c=15%, how much currency is in circulation? Be clear about whether this is positive or negative.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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51)Consider the following for National City Bank. If the required reserve ratio is 4 percent, the excess reserves of National City Bank is Assets Liabilities Reserves $10,000 Deposits $100,000 Loans $90,000 Select one: a. $10,000 b. $6,000 c. $3,000 d. $4,000
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