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

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: The Monetary System
Section: Chapter Questions
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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
Transcribed Image Text: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
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