A bank has a reserve requirement of 0.08. If it has demand deposits of $200,000 and is holding $4,000 in reserves: a. the bank is holding $2,000 in excess reserves. b. the bank could extend additional loans and still meet its reserve requirement. c. all the bank's reserves are excess reserves. d. the bank is not meeting its reserve requirement.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A bank has a reserve requirement of 0.08. If it has demand deposits of $200,000 and is holding $4,000 in reserves: a. the bank is holding ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $55,000 $50,000 Useful life 12 years 15 years Estimated residual value $5,000 $6,000 Estimated
Answers (1)
Victor Cruz contributed $77,000 in cash and land worth $144,000 to open a new business, VC Consulting, in exchange for common stock. Which of the following general journal entries will VC Consulting make to record this transaction? A.
Answers (1)
Suppose you have a friend who says she does not need any resources or career experience before selecting a career, because she has already chosen her career. What might you tell her about career resources and their importance in career selection?
Answers (1)
Who would be the various stakeholders of a restaurant?
Answers (2)
Which of the following is a correct statement about the distribution of income and wealth in the United States? A. The share of money income received by the lowest quintile has increased significantly since World War II. B.
Answers (1)
New Questions in Business
Sharp Focus Cameras is facing intense competitive pressure. Top marketing managers are looking for ways to cut costs. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution.
Answers (1)
Older adults who participated in 20 one-hour video game training sessions with the program lumosity showed reduction in their:
Answers (1)
The total of tools, equipment, machinery, and buildings used to produce goods and services is called supply. True or False
Answers (1)
What percentage of federal revenues is made up of corporate taxes
Answers (1)
F Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will probably
Answers (1)