Assets Liabilities Reserves Deposits $1,000 Loans $970 Total $1,000 Total $1,000 The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The desired reserve ratio is 3 percent. After Barney's deposit, but before any other actions occur, MegaBank will have excess reserves of O $48.50 O $50.00 O $15.00 O $33.00 $30

Assets Liabilities Reserves Deposits $1,000 Loans $970 Total $1,000 Total $1,000 The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The desired reserve ratio is 3 percent. After Barney's deposit, but before any other actions occur, MegaBank will have excess reserves of O $48.50 O $50.00 O $15.00 O $33.00 $30

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Banking And The Money Supply

Section: Chapter Questions

Problem 2.3P

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