Assuming that the reserve ratio is 10%, what amount of excess reserves are held by with the bank balance sheet listed below?Assets Liabilities & Net Worth Reserves $280,000 Checking deposits$2,800,000Loans Outstanding$2,920,000 Total$3,200,000 Net Worth Stockholders' Equity $400,000 Total$3,200,000 a.$240,000 b.zero c.$320,000 d.$280,000

The excess reserves of a bank are the difference between its total reserves and the required…

Answered: Assuming that the reserve ratio is 10%,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assuming that the reserve ratio is 10%, what amount of excess reserves are held by with the bank balance sheet listed below?

Assets		Liabilities & Net Worth
Reserves	$280,000	Checking deposits	$2,800,000
Loans Outstanding	$2,920,000
Total	$3,200,000	Net Worth
		Stockholders' Equity	$400,000
		Total	$3,200,000

	a.	$240,000
	b.	zero
	c.	$320,000
	d.	$280,000

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