Question
If Bank A's total reserves are $10.8 million, its excess reserves are $4.60 million, and the required reserve ratio is 4%, then Bank A's required
If Bank A's total reserves are $10.8 million, its excess reserves are $4.60 million, and the required reserve ratio is 4%, then Bank A's required reserves equal ________________ and its total deposits equal ____________________.
Group of answer choices
$6.2 million; $105 million
$6.6 million; $165 million
$6.6 million; $270 million
$6.1 million; $122 million
$6.2 million; $155 million
Table 15 shows the balance sheet of the Tenth National Bank
Assets | Liabilities |
Reserves $621 | Deposits $4,600 |
Loans $3,979 | |
Total: $4,600 | Total: $4,600 |
Refer to Table 15. Assume that this bank lends out its entire excess reserves. If Jerry deposits $486 of cash in a checking account in the Tenth National Bank, what's the maximum change in the money supply in the economy?
Group of answer choices
$486
$1,107
$3,600
$3,800
$4,200
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