A small state bank currently has reserves equal to $300,000. If the state reserve
requirement is 20%, but the bank currently maintains a 30% reserve, how much are the excess reserves the bank currently

a. $200,000
b. $100,000
c. $300,000
d. $500,000
e. None
of the above.

Question

A small state bank currently has reserves equal to $300,000. If the state reserve
requirement is 20%, but the bank currently maintains a 30% reserve, how much are the excess reserves the bank currently

a. $200,000
b. $100,000
c. $300,000
d. $500,000
e. None
of the above.

anonymous · Answer

30%=$300000 what about the certified 20%
(20*300000)/30=200000 therefore the excess in reserves amounts to 300000-200000=100000 ans b.

matthewrlee · Answer

Withdrawn you're money from that bank and open a new account somewhere else. If they only have $300,000 in reserves they are about go out of business.