Reserve Checkable Actual Excess Requirement (%)| Deposits Reserves Reserves (1) W $100,000 $10,000 $0 (2) 8 20,000 12,000 (3) 12 200,000 8,000 (4) 20 300, 000 70,000 The accompanying table gives data for a commercial bank or thrift. In row 1, the number appropriate for space W is O 12. O 10. O 4. 6.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Reserve
Checkable
Actual
Excess
Requirement (%)
Deposits
Reserves
Reserves
(1)
W
$100,000
$10,000
$0
(2)
8
20,000
12,000
(3)
12
200,000
8,000
(4)
20
300,000
70,000
Z
The accompanying table gives data for a commercial bank or thrift. In row 1, the
number appropriate for space W is
О 12.
O 10.
4.
6.
Transcribed Image Text:Reserve Checkable Actual Excess Requirement (%) Deposits Reserves Reserves (1) W $100,000 $10,000 $0 (2) 8 20,000 12,000 (3) 12 200,000 8,000 (4) 20 300,000 70,000 Z The accompanying table gives data for a commercial bank or thrift. In row 1, the number appropriate for space W is О 12. O 10. 4. 6.
Assets
Liabilities and Net Worth
Reserves
$40,000
Checkable Deposits
$130,000
Loans
25,000
Stock Shares
45,000
Securities 110,000
Assume the Continental National Bank's balance statement is as shown in the
accompanying table. Assuming a legal reserve ratio of 20 percent, how much in
excess reserves would this bank have after a check for $10,000 was drawn and
cleared against it?
$24,000
$3,000
O $16,000
O $6,000
Transcribed Image Text:Assets Liabilities and Net Worth Reserves $40,000 Checkable Deposits $130,000 Loans 25,000 Stock Shares 45,000 Securities 110,000 Assume the Continental National Bank's balance statement is as shown in the accompanying table. Assuming a legal reserve ratio of 20 percent, how much in excess reserves would this bank have after a check for $10,000 was drawn and cleared against it? $24,000 $3,000 O $16,000 O $6,000
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