Question

Use the data table to answer the following question.

Assets (billion $) Liabilities (billion $)
Total reserves 3,000 Deposits 18,000
Loan 15,000
Total 18,000 Total 18,000


Assume the required reserve ratio to be 10%. Is the bank holding any excess reserve? If so, then what is the magnitude of the excess reserve? (2 points)

No, the bank is not holding any excess reserve.

Yes, the bank is holding an excess reserve of $1,200 billion.

Yes, the bank is holding an excess reserve of $1,260 billion.

Yes, the bank is holding an excess reserve of $1,800 billion.

Yes, the bank is holding an excess reserve of $1,860 billion

Answer 1

Answer:

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