Suppose that Serendipity Bank has excess reserves of $14,000 and checkable deposits of $200,000. Instructions: Enter...

Question

Question

Suppose that Serendipity Bank has excess reserves of $14,000 and checkable deposits of $200,000. Instructions: Enter your ans

business economics

Answer 1

Answer #1

what is the size of bank's actual reserves

=excess reserves plus required reserves

=excess reserves+(reserve ratio*checkable deposits)

=14000+(10%*200000)

=34000

Answer 2

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