13. If a bank has $4,000 of checkable deposits (DD), $3,000 in loans, and a required reserve ratio (rT) of 10 percent. The bank's excess reservės are A) $1,000. DD = 400o 3000 =1oans B) $600. C) $1,400 D) $3,400

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
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13. If a bank has $4,000 of checkable deposits (DD), $3,000 in loans, and a required reserve ratio
(rT) of 10 percent. The bank's excess reserves are
A) $1,000.
DD= 400o
3000 = 1oans
B) $600.
C) $1,400
D) $3,400
Transcribed Image Text:13. If a bank has $4,000 of checkable deposits (DD), $3,000 in loans, and a required reserve ratio (rT) of 10 percent. The bank's excess reserves are A) $1,000. DD= 400o 3000 = 1oans B) $600. C) $1,400 D) $3,400
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