5 A bank has $210,000 in excess reserves and the required reserve ratio is 25 percent. This means the bank could have total reserves. $80,000, $10,000 $100,000, $50,000 $280,000, $70,000 $50.000, $30.000 6 If a bank's excess reserve is zero and the required reserve ratio is increased, which of the following will happen? Banks will begin to extend more credit. Banks will have positive excess reserves. Banks will begin to extend more loans. Banks will have a reserve deficiency in checkable deposit liabilities and

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section: Chapter Questions
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5
A bank has $210,000 in excess reserves and the required reserve ratio is 25 percent. This means the bank could have
total reserves.
$80,000, $10,000
$100,000, $50,000
$280,000, $70,000
$50.000, $30.000
6
If a bank's excess reserve is zero and the required reserve ratio is increased, which of the following will happen?
Banks will begin to extend more credit.
Banks will have positive excess reserves.
Banks will begin to extend more loans.
Banks will have a reserve deficiency
in checkable deposit liabilities and
Transcribed Image Text:5 A bank has $210,000 in excess reserves and the required reserve ratio is 25 percent. This means the bank could have total reserves. $80,000, $10,000 $100,000, $50,000 $280,000, $70,000 $50.000, $30.000 6 If a bank's excess reserve is zero and the required reserve ratio is increased, which of the following will happen? Banks will begin to extend more credit. Banks will have positive excess reserves. Banks will begin to extend more loans. Banks will have a reserve deficiency in checkable deposit liabilities and
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