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Examine the chart below which contains Bank 1’s balance sheet.  If the commercial bank has $300 in excess reserves, then the legal reserve requirement must be:   Assets Liabilities Total Reserves     $500 Demand Deposits $1000 Loans                  $500         Question 19 options:   a)  10%   b)  30%   c)  20%   d)  80%

Examine the chart below which contains Bank 1’s balance sheet.  If the commercial bank has $300 in excess reserves, then the legal reserve requirement must be:   Assets Liabilities Total Reserves     $500 Demand Deposits $1000 Loans                  $500         Question 19 options:   a)  10%   b)  30%   c)  20%   d)  80%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 19 

 
Examine the chart below which contains Bank 1’s balance sheet.  If the commercial bank has $300 in excess reserves, then the legal reserve requirement must be:
 
Assets Liabilities
Total Reserves     $500 Demand Deposits $1000
Loans                  $500  
   
 
Question 19 options:
 

a) 

 10%
 

b) 

 30%
 

c) 

 20%
 

d) 

 80%
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