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Author Question: The Bank of Arugula has $9 million in deposits and $900,000 in reserves. If the required reserve ... (Read 34 times)

theo

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Question 1

The Intracoastal Bank has $5 million in deposits and $500,000 in reserves. If the required reserve ratio is 5%, excess reserves are equal to


◦ zero.
◦ $125,000.
◦ $250,000.
◦ $500,000.

Question 2

The Bank of Arugula has $9 million in deposits and $900,000 in reserves. If the required reserve ratio is 10%, excess reserves are equal to


◦ $180,000.
◦ $90,000.
◦ $81,000.
◦ zero.


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Marked as best answer by theo on Apr 19, 2019

Loise Hard

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