Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A large commercial bank based in Idaho has checkable deposits of $10,101, reserves of $1,205 and its value of loan assets is worth $8,896. A
A large commercial bank based in Idaho has checkable deposits of $10,101, reserves of $1,205 and its value of loan assets is worth $8,896. A customer then opens a new account and deposits $20. After the deposit, assuming the required reserve ratio is 8%, what are the bank's excess reserves?
Group of answer choices
$580.92
$544.44
$415.32
$401.11
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started