6. Required and excess reserves Suppose that Walls Fergo Bank currently has $200,000 in demand deposits and $130,000 in outstanding loans. Assume the Federal Reserve has the reserve requirement set at 10% Based on this information, complete the following table detalling Walls Fergo Bank's reserves, required reserves, and excess reserves. Reserves (Dollars) Walls Fergo Required Reserves (Dollars) Excess Reserves (Dollars)
6. Required and excess reserves Suppose that Walls Fergo Bank currently has $200,000 in demand deposits and $130,000 in outstanding loans. Assume the Federal Reserve has the reserve requirement set at 10% Based on this information, complete the following table detalling Walls Fergo Bank's reserves, required reserves, and excess reserves. Reserves (Dollars) Walls Fergo Required Reserves (Dollars) Excess Reserves (Dollars)
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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