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Suppose that Homework Bank has loans of $125,000, deposits of $150,000, and reserves of $25,000. The reserve ratio is 10 percent and then Rick deposits
Suppose that Homework Bank has loans of $125,000, deposits of $150,000, and reserves of $25,000. The reserve ratio is 10 percent and then Rick deposits an additional $50,000 into the bank, then if the bank takes no other action it will none are correct 0 have $65,000 in excess reserves. 0 need to raise an additional $5,000 of reserves to meet the reserve requirement 0 have $55,000 in excess reserves
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