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    Economics Study Set 2
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    Exam 14: The Federal Reserve and Monetary Policy
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    Assume That a Bank Has $2,000 in Total Reserves and $10,000
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Assume That a Bank Has $2,000 in Total Reserves and $10,000

Question 96

Question 96

Multiple Choice

Assume that a bank has $2,000 in total reserves and $10,000 in checkable deposits and the required reserve ratio on checkable deposits is 20%.This bank's excess reserves equal


A) $500.
B) $250.
C) $750.
D) zero.

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