Business
aaa
1

A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required reserve ratio is 10 percent. How big are the bank’s excess reserves? LO33.2a.$100 million.b.$88 million.c.$12 million.d.$2 million.

+0
(1) Answers
JamieJamieJamie

Given: Checkable deposit = $100 million actual reserves = $12 million required reserve ratio = 10% 100 million * 10% = 10 million 10 million - 12 million = 2 million excess reserves D.) $2 million is the bank's excess reserves

Add answer