If a bank has $1,000,000 in reserves and checking deposits of $3,000,000 . what is the bank's reserve position if the required reserve ratio is 20 percent?
a. The bank has $500,000 of required reserves and $500,000 of excess reserves.
b. The bank has $600,000 of required reserves and $400,000 of excess reserves.
c. The bank has $400,000 of required reserves and $600,000 of excess reserves.
d. The bank has $200,000 of required reserves and $800,000 of excess reserves.
b
You might also like to view...
In the short run, a perfectly competitive firm's economic profits
A) must equal zero, that is, the firm earns a normal profit. B) must be positive. C) might be positive, negative (an economic loss), or zero (a normal profit). D) must be negative, that is the firm must incur an economic loss.
What is the difference between explicit costs and implicit costs? List three examples each of explicit costs and implicit costs that may be experienced by a small business
What will be an ideal response?