Wahoo Bank has $800 million in total deposits, $80 million worth of cash in the bank’s vault, and $20 million in Wahoo Bank’s account at the Federal Reserve. If the required reserve ratio (rr) is 10%, what amount of excess reserves does Wahoo Bank have?

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
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Wahoo Bank has $800 million in total deposits, $80 million worth of cash in the bank’s vault, and $20 million in Wahoo Bank’s account at the Federal Reserve. If the required reserve ratio (rr) is 10%, what amount of excess reserves does Wahoo Bank have?

​A. None

​B. $20 million

​C. -$60 million

​D. None of the above.

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