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Author Question: Refer to the information provided in Table 25.4 below to answer the question(s) that follow. Refer ... (Read 17 times)

mwit1967

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Question 1

The Bank of Red Oak has $2 million in deposits and $400,000 in reserves. If excess reserves are equal to $100,000, the required reserve ratio is


◦ 5%.
◦ 10%.
◦ 15%.
◦ 20%.

Question 2

Refer to the information provided in Table 25.4 below to answer the question(s) that follow.












Refer to Table 25.4. If the required reserve ratio is 15%, First Charter Bank


◦ is loaned up.
◦ has too few reserves on hand.
◦ is meeting its required reserve ratio and has $200,000 in excess reserves.
◦ has excess reserves of $100,000.


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Marked as best answer by mwit1967 on Apr 19, 2019

asdfasdf

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mwit1967

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Reply 2 on: Apr 19, 2019
:D TYSM


meganmoser117

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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