QUESTION
16
Suppose that Serendipity Bank has excess reserves of $8,000 and
checkable deposits of $150,000.
Instructions: Enter your answer as a whole
number.
If the reserve ratio is 20 percent, what is the size of the
bank's actual reserves? $__________.
QUESTION
17
Third National Bank has reserves of $20,000 and checkable
deposits of $100,000. The reserve ratio is 20 percent. Households
deposit $5,000 in currency into the bank and that currency is added
to reserves.
Instructions: Enter your answer as a whole
number.
What level of excess reserves does the bank now have?
$_________.
QUESTION
18
Suppose that Third National Bank has reserves of $20,000 and
checkable deposits of $100,000. The reserve ratio is 20 percent.
The bank sells $5,000 in securities to the Federal Reserve Bank in
its district, receiving a $5,000 increase in reserves in
return.
Instructions: Enter your answer as a whole
number.
What level of excess reserves does the bank now have?
$____________.
Answer
