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Harman [31]
3 years ago
6

Ninth national bank holds $150,000,000 in checkable deposits and $12,000,000 in total reserves. with a required reserve ratio of

8 percent, how much in excess reserves is ninth national holding?
Business
1 answer:
hram777 [196]3 years ago
3 0
We are asked to solve for the excess reserves. There are given values such as:
Checkable deposits = $ 150,000,000
Total reserves = $12,000,000
Required reserve ratio = 8%

Solving for reserve amount, we have:
Reserve amount = 0.08 * $150,000,000 = $ 12,000,000

Solving for the excess:
Excess reserves = $ 12,000,000 - $12,000,000 = $0

The answer is $0.
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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Kindly comment if you need further assistance. Thanks

Download xlsx
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