Suppose a credit union has checkable deposits of $400,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $4,000, then its actual reserves are Multiple Choice $36,000. $44,000. $40,000. $4,000.
Suppose a credit union has checkable deposits of $400,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $4,000, then its actual reserves are Multiple Choice $36,000. $44,000. $40,000. $4,000.
Chapter1: Making Economics Decisions
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![Suppose a credit union has checkable deposits of $400,000 and the legal reserve
ratio is 10 percent. If the institution has excess reserves of $4,000, then its actual
reserves are
Multiple Choice
$36,000.
$44,000.
$40,000.
$4,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7502f147-9c5d-4fda-9f97-65fbde2893d4%2Fe46a450a-2a13-4ec8-a75c-03d8c39fe043%2F4xxe9gu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose a credit union has checkable deposits of $400,000 and the legal reserve
ratio is 10 percent. If the institution has excess reserves of $4,000, then its actual
reserves are
Multiple Choice
$36,000.
$44,000.
$40,000.
$4,000.
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