Suppose a Bank Has $3,000 in Reserves, $25,000 of Deposits

question 80

Short Answer

Suppose a bank has $3,000 in reserves, $25,000 of deposits, and a 10 percent reserve requirement. What is the amount of excess reserves?

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Definitions:

Communication

The process of exchanging information, ideas, feelings, and messages between individuals or groups.

Rewards

Benefits, compensations, or recognitions provided to individuals or groups in response to their achievements or desired behaviors.

Internal Conflict

A struggle within a person caused by opposing desires, beliefs, or needs, or such conflicts within groups or organizations.

Overwhelmed

A state of feeling unable to cope due to being overloaded with various demands or pressures.