Business
lilmzpiggy17
10

Ninth national bank holds $150,000,000 in checkable deposits and $12,000,000 in total reserves. with a required reserve ratio of 8 percent, how much in excess reserves is ninth national holding?

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Latko613

We are asked to solve for the excess reserves. There are given values such as: Checkable deposits = $ 150,000,000 Total reserves = $12,000,000 Required reserve ratio = 8% Solving for reserve amount, we have: Reserve amount = 0.08 * $150,000,000 = $ 12,000,000 Solving for the excess: Excess reserves = $ 12,000,000 - $12,000,000 = $0 The answer is $0.

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