A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required

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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?

a. $100 million

b. $88 million

c. $12 million

d. $2 million

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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Question Posted: Mar 02, 2024 01:00 PM

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A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required

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ANSWER Excess reserves refer to reserves held by a bank in ...View the full answer

Macroeconomics

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