$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$ -The Above Table Gives the Initial Balance Sheet for Mega

question 454

Multiple Choice

$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } & \$ 30 &\text { Deposits }&\$1,000\\\text { Loans }&\$970\\\text { Total } & \$ 1,000&\text { Total }&\$1,000 \\\hline\end{array}$
-The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The desired reserve ratio is 3 percent. After Barney?s deposit, but before any other actions occur, MegaBank will have excess reserves of

• A) $15.00.
• B) $50.00.
• C) $48.50.
• D) $33.00.

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