Table 29-5.ReservesLoansAssetsBank of PleasantvilleO $1,000O $400O $200O $250$2,00018,000LiabilitiesDeposits$20,000Refer to Table 29-5. If the Fed's reserve requirement(R) is 9 percent, then what quantity of excessreserves does the Bank of Pleasantville now hold?

Deposit = $20,000Reserves = $2000The Fed's reserve requirement is 9 percent. i.e., R = 9%

Answered: Refer to Table 29-5. If the Fed's…

Refer to Table 29-5. If the Fed's reserve requirement (R) is 9 percent, then what quantity of excess reserves does the Bank of Pleasantville now hold?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 9QR

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Question

Table 29-5.
Reserves
Loans
Assets
Bank of Pleasantville
O $1,000
O $400
O $200
O $250
$2,000
18,000
Liabilities
Deposits
$20,000
Refer to Table 29-5. If the Fed's reserve requirement
(R) is 9 percent, then what quantity of excess
reserves does the Bank of Pleasantville now hold?

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