Suppose a bank has a total deposit of $748 million. If the bank’s required reserves equal $253 million, total loans equal $368 million, then the bank has excess reserves of: Group of answer choices $109 million. $115 million. $127 million. $380 million. $495 million.

Suppose a bank has a total deposit of $748 million. If the bank’s required reserves equal $253 million, total loans equal $368 million, then the bank has excess reserves of: Group of answer choices $109 million. $115 million. $127 million. $380 million. $495 million.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter15: Money Creation

Section: Chapter Questions

Problem 19SQ

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Question

Suppose a bank has a total deposit of $748 million. If the bank’s required reserves equal $253 million, total loans equal $368 million, then the bank has excess reserves of:

Group of answer choices

$109 million.

$115 million.

$127 million.

$380 million.

$495 million.

Definition Definition Minimum amount that a commercial bank must hold in liquid assets in order to fulfill central bank regulations.

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