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Oduvanchick [21]
3 years ago
7

Assume banks are required to hold reserves equal to 20 percent of deposits. Instructions: Enter your responses as a whole number

. a. How much excess reserves does the bank hold
Business
1 answer:
stellarik [79]3 years ago
4 0

Answer: $100

Explanation:

If the reserve requirement is 20% then the required reserves being held by the company is:

= Total deposits * reserve requirement

= 8,000 * 20%

= $1,600

The reserves held by the company of $1,700 comprise of both the required reserves and the excess reserves. The excess reserves will therefore be calculated as:

Excess reserves = Reserves - Required reserves

= 1,700 - 1,600

= $100

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Yes, Johnson’s apology is one that calls for awareness regarding the issue as he did apologized to the two men who were involved in the case and also carried on some changes to prevent such scenarios from ever occurring again.

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<h3>Did Johnson’s apology and follow-up actions uphold Starbucks’ mission and core values? </h3>

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