Question

bank holds ​$10 for every​ $100 in deposits. The bank wants to hold ​$9 for every​ $100 in deposits. The bank holds desired reserves of ​$7 comma 000 and actual reserves of ​$12 comma 000 . What is the actual reserve​ ratio, the desired reserve​ ratio, and the excess reserves ​?

Answer 1

Answer:

Actual reserve ratio = Money that bank holds per deposit

= 10 / 100

= 10%

Desired reserve ratio = Money banks wants to hold per deposit

= 9 / 100

= 9%

Excess reserves = Actual reserves - desired reserves

= 12,000 - 7,000

= $5,000