Suppose That the Bank of Bananas Has Excess Reserves of $10,000,000

question 82

Multiple Choice

Suppose that the Bank of Bananas has excess reserves of $10,000,000 and checkable deposits $200,000,000.If the bank has a reserve requirement of 25%,what is the bank's total amount of required reserves?

• A) $10,000,000
• B) $40,000,000
• C) $50,000,000
• D) $60,000,000
• E) $202,500,000

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Definitions:

Loan

Borrowed funds that must be repaid with interest, used by individuals or entities to finance various activities.