Table 16-1 -Refer to Table 16-1

question 271

Multiple Choice

Table 16-1
$\begin{array}{|c|c|}\hline \text { Assets } & \text { Liabilities } \\\hline \text { Reserves }+\$ 4,000 & \text { Deposits }+\$ 4,000 \\\hline\end{array}$
-Refer to Table 16-1.Suppose a transaction changes a bank's balance sheet as indicated in the T-account,and the required reserve ratio is 10 percent.As a result of the transaction,the bank has excess reserves of

• A) $0.
• B) $400.
• C) $3,600.
• D) $4,000.

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Definitions:

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