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Problem

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question

Suppose a commercial bank has deposits of 400,000andhasmadeloansandinvestmentsof400,000 and has made loans and investments of 315,000. Assume also that deposits are its only source of reserves. If the required reserve ratio is 20%, how much are its excess reserves?
Plain-text mathematical notation (without MathML)
Suppose a commercial bank has deposits of 400,000andhasmadeloansandinvestmentsof315,000. Assume also that deposits are its only source of reserves. If the required reserve ratio is 20%, how much are its excess reserves?
Original LaTeX notation
Suppose a commercial bank has deposits of $400,000 and has made loans and investments of $315,000. Assume also that deposits are its only source of reserves. If the required reserve ratio is 20%, how much are its excess reserves?

category

economics

options

  1. $85,000
  2. $80,000
  3. $5,000
  4. $315,000

src

stemez-Economics

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