I need the answer as soon as possible A bank has excess reserves of $5,000 and demanddeposits of $50,000; the required reserve ratio is20 percent. If the reserve ratio is raised to 25percent, then this bank can lend a maximum of$2,000.$2,500.$1,000.$1,500.

Here we can calculate the excess reserve and choose the correct option which are as follow-

Answered: A bank has excess reserves of $5,000…

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

Problem 9WNG

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A bank has excess reserves of $5,000 and demanc deposits of $50,000; the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, then this bank can lend a maximum of $2,000. $2,500. $1,000.