Ask Question
8 November, 08:13

The manager of the bank where you work tells you that your bank has $10 million in excess reserves. she also tells you that the bank has $400 million in deposits and $355 million dollars in loans. given this information you find that the reserve requirement must be

a. 35/355.

b. 45/355.

c. 35/400.

d. 45/400.

+5
Answers (1)
  1. 8 November, 11:14
    0
    The answer is option "c. 35/400".

    This is how we calculate this;

    reserve requirement = (bank deposits - loans - excess reserves) / bank deposits

    = (400 - 355 - 10) / 400

    = 35/400
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The manager of the bank where you work tells you that your bank has $10 million in excess reserves. she also tells you that the bank has ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers