A bank's checkable deposits are $960, its loans are $857 and the bank has reserves of $103. If the bank faces a required reserve ratio of 9%, then what are the bank's current excess reserves?
A bank's checkable deposits are $960, its loans are $857 and the bank has reserves of $103. If the bank faces a required reserve ratio of 9%, then what are the bank's current excess reserves?
Chapter19: Money Creation
Section: Chapter Questions
Problem 19SQ
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A bank's checkable deposits are $960, its loans are $857 and the bank has reserves of $103. If the bank faces a
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