Refer to the information provided in Table below to answer the question(s) thatfollow.TableFirst Commercial BankAssetsLiabilities + Net WorthReserves:$800,000$2 million$500,000DepositsNet WorthRequired $200,000ExessLoansTotal$2.5 million$2.5 million TotalRefer to Table First Commercial Bank's excess reserves equalSelect one:a. $200,000.b. $1,000,000.C. $1,500,000.d. $600,000.

the excess reserve formula is given by total demand deposited - required reserve

Assets Liabilities + Net Worth Reserves: Required $200,000 Excess $800,000 $2 million $500,000 Deposits Net Worth Loans Total $2.5 million $25 million Total Refer to Table First Commercial Bank's excess reserves equal select one: a. $200,000. b. $1,000,000. C. $1,500,000. d. $600,000.

Assets Liabilities + Net Worth Reserves: Required $200,000 Excess $800,000 $2 million $500,000 Deposits Net Worth Loans Total $2.5 million $25 million Total Refer to Table First Commercial Bank's excess reserves equal select one: a. $200,000. b. $1,000,000. C. $1,500,000. d. $600,000.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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