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Table 10-2 Last Bank of Panorama Springs Assets: Liabilities: Reserves $25,000 Deposits $175,000 Loans $150,000 Refer to Table 10-2. If the reserve requirement is 5
Table 10-2 Last Bank of Panorama Springs Assets: Liabilities: Reserves $25,000 Deposits $175,000 Loans $150,000 Refer to Table 10-2. If the reserve requirement is 5 percent and then someone deposits $50,000 into the bank, what is the bank's reserve position? Question 21 Answer a. It will have $63,750 in excess reserves. b. It will have $52,500 in excess reserves. c. It will need to raise reserves by $5000. d. It will have excess reserves of $2500. e. None of the above
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