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?
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
Problem 4WNG
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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
A. None
B. $20 million
C. -$60 million
D. None of the above.
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