Bank two currently has $500 million in transaction deposits. The bank has $65 million in reserves. The Federal reserve requirement ratio is 12%. The bank's required reserves are _____________ and its excess reserves are _____________. $60 million; $0. $60 million; $5 million. $440 million; $5 million. $600 million; $60 million.

Bank two currently has $500 million in transaction deposits. The bank has $65 million in reserves. The Federal reserve requirement ratio is 12%. The bank's required reserves are _ and its excess reserves are _. $60 million; $0. $60 million; $5 million. $440 million; $5 million. $600 million; $60 million.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 4WNG

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