John deposits $3,000 into his checking account. If the reserve ratio is 15%, what are the required and excess reserves? Required reserves: $ Excess reserves: $ keep a portion of it and lend out the rest. keep every penny as vault cash since it is such a small amount. lend out every penny since almost all transactions are digital.
John deposits $3,000 into his checking account. If the reserve ratio is 15%, what are the required and excess reserves? Required reserves: $ Excess reserves: $ keep a portion of it and lend out the rest. keep every penny as vault cash since it is such a small amount. lend out every penny since almost all transactions are digital.
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter14: Money And Banking
Section: Chapter Questions
Problem 8AA
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![John deposits $3,000 into his checking account. If the reserve ratio is 15%, what are the required and excess reserves?
Required reserves: $ Excess reserves: $ keep a portion of it and lend out the rest. keep every penny as vault cash since it
is such a small amount. lend out every penny since almost all transactions are digital.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd1f971de-8c8b-476f-94b0-6c2a49f28f97%2F3d8101b3-26b2-4f64-a95c-66522bb92889%2Fz5wkpyf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:John deposits $3,000 into his checking account. If the reserve ratio is 15%, what are the required and excess reserves?
Required reserves: $ Excess reserves: $ keep a portion of it and lend out the rest. keep every penny as vault cash since it
is such a small amount. lend out every penny since almost all transactions are digital.
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