Question

Assets Liabilities and Net Worth Reserves $51 Checkable Deposits $140 Loans 109 Stock Shares 130 Securities 100 Property 10 Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All figures are in billions. The commercial banking system has excess reserves of

Answer 1

Answer:

$9 billion

Explanation:

Calculation to determine what The commercial banking system has excess reserves of

Using this formula

Excess Reserve= Net Worth Reserves -Required reserve

Let plug in the formula

Excess Reserve=$51 billion - (.30*$140 billion)

Excess Reserve=$51 billion-$42 billion

Excess Reserve=$9 billion

Therefore The commercial banking system has excess reserves of $9 billion