The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is

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The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank that is added to reserves. What level of excess reserves does the bank now have?

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Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

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Question Posted: May 23, 2013 07:56 AM

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The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is

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Checkable deposits have risen to 105000 ...View the full answer

Economics

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