If the required reserve ratio were 10%, how much of this bank's reserves would qualify as excess reserves?A) 200,000B) 300,000C) 400,000D) 550,000E) 3,000,000 ASSETScash in the vault:US treasury bonds:loans:Building:TOTALS:O $200,000$300,000$400,000If the required reserve ratio were 10%, how much of this bank's reserves would qualify as excess reserves?$550,000LIABILITIES & NET WORTH$4,000,000O $3,000,000$800,000 demand deposits:$300,000$2,400,000$1,000,000$4,500,000 TOTALS:capital stock:$500,000$4,500,000

Required reserve ratio and excess reserves: The required reserve ratio of a bank depicts the minimum…

Answered: If the required reserve ratio were 10%,…

If the required reserve ratio were 10%, how much of this bank's reserves would qualify as excess reserves? A) 200,000 B) 300,000 C) 400,000 D) 550,000 E) 3,000,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the required reserve ratio were 10%, how much of this bank's reserves would qualify as excess reserves?

A) 200,000

B) 300,000

C) 400,000

D) 550,000

E) 3,000,000

ASSETS
cash in the vault:
US treasury bonds:
loans:
Building:
TOTALS:
O $200,000
$300,000
$400,000
If the required reserve ratio were 10%, how much of this bank's reserves would qualify as excess reserves?
$550,000
LIABILITIES & NET WORTH
$4,000,000
O $3,000,000
$800,000 demand deposits:
$300,000
$2,400,000
$1,000,000
$4,500,000 TOTALS:
capital stock:
$500,000
$4,500,000

Definition Definition Minimum amount that a commercial bank must hold in liquid assets in order to fulfill central bank regulations.

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