A bank has a reserve requirement of 0.08. If it has demand deposits of $200,000 and is holding $4,000 in reserves: a. the bank is holding $2,000 in excess reserves. b. the bank could extend additional loans and still meet its reserve requirement. c. all the bank's reserves are excess reserves. d. the bank is not meeting its reserve requirement.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A bank has a reserve requirement of 0.08. If it has demand deposits of $200,000 and is holding $4,000 in reserves: a. the bank is holding ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
1. When demand curve is elastic, a. price and total expenditure move in the same direction. b. price and total expenditure move in the opposite direction. c. price may be rising or falling but total expenditure is constant. d.
Answers (1)
Why markets can only supply private goods efficiently?
Answers (1)
Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $90.37, while a 2-year zero sells at $77.15. You are considering the purchase of a 2-year-maturity bond making annual coupon payments.
Answers (1)
A parcel delivery company delivered 103,225 packages last year, when its average employment was 85 drivers. This year the firm handled 112,260 deliveries with 92 drivers.
Answers (1)
The smiths have decided to move to antigua. they are transferring the ownership of their $950,000 home in oakland to their daughter, renee.
Answers (1)
New Questions in Business
Digby has a roe of 0.24 (roe = net income/equity). that means:
Answers (1)
If a bank depositor withdraws $1000 of currency from an account, what happens to bank reserves, checkable deposits, and the monetary base? Assume that the required reserve ratio on checkable deposits is 10% and banks do not hold any excess reserves.
Answers (1)
During the Great Depression, consumer spending was higher than ever in history. Question 10 options: True False
Answers (2)
A property is being appraised by the cost approach. The appraiser estimates that the land is worth $17,000 and the replacement cost of the improvements is $235,000. Total depreciation from all causes is $23,000.
Answers (1)
NorthWest Corp. obtained the following information from its accounting records: Sales $70,000 Beginning Finished Goods Inventory $10,000 Ending Finished Goods Inventory $46,000 Cost of Goods Sold $22,000 Ending Work-in-Process Inventory $30,000
Answers (1)