If Bank A's total reserves are $10.8 million, its excess reserves are $4.20 million, and the required reserve ratio is 4%, then Bank A's required reserves equal __________ and its total deposits equal __________. $6.1 million; $152.5 million $6.6 million; $165 million $15 million; $375 million $6.1 million; $122 million $6.6 million; $264 million
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So, if Bank A's total reserves are $10.8 million and its excess reserves are $4.20 million, then its required reserves must be $10.8 million - $4.20 million = $6.6 million, not $6.1 million. Second, the required reserve ratio is the percentage of deposits that a Show more…
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