Assuming that the reserve ratio is 10%, what amount of excess reserves are held by with the bank balance sheet listed below? Assets Liabilities & Net Worth Reserves $280,000 Checking deposits $2,800,000 Loans Outstanding $2,920,000 Total $3,200,000 Net Worth Stockholders' Equity $400,000 Total $3,200,000 a. $240,000 b. zero c. $320,000 d. $280,000
Assuming that the reserve ratio is 10%, what amount of excess reserves are held by with the bank balance sheet listed below? Assets Liabilities & Net Worth Reserves $280,000 Checking deposits $2,800,000 Loans Outstanding $2,920,000 Total $3,200,000 Net Worth Stockholders' Equity $400,000 Total $3,200,000 a. $240,000 b. zero c. $320,000 d. $280,000
Chapter12: Money, Banking And The Financial System
Section: Chapter Questions
Problem 2WNG
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Question
Assuming that the reserve ratio is 10%, what amount of excess reserves are held by with the bank balance sheet listed below?
| Assets | Liabilities & Net Worth | |||
| Reserves | $280,000 | Checking deposits | $2,800,000 | |
| Loans Outstanding | $2,920,000 | |||
| Total | $3,200,000 | Net Worth | ||
| $400,000 | ||||
| Total | $3,200,000 |
| a. |
$240,000
|
|
| b. |
zero
|
|
| c. |
$320,000
|
|
| d. |
$280,000
|
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