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Darya [45]
2 years ago
14

Suppose a bank has​ $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 perce

nt. If the Federal Reserve raises the required reserve ratio to 15​ percent, then the bank will now have excess reserves of
A) $0
B) $2 million
C) $8 million
D) $10 million
Business
1 answer:
Mkey [24]2 years ago
3 0

Answer:

A) $0

Explanation:

with 100 million in checking account, and required reserve ratio in 10%

the bank need to hold 10 millions

IFthe Federal Reserve raises the required reserve ratio to 15% then it will need hold 15 millions

<u>This bank has none excess reserves</u>

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