Excess reserves
Not what you're looking for? Search our solutions OR ask your own Custom question.
Given that a bank has 90 in demand deposits and 110 in savings deposits in libilities and 25 in Reserves at the Fed, is this all the information I need for determining the banks excess reserves?
The required reserve ratio is 5% on all deposits
© BrainMass Inc. brainmass.com December 24, 2021, 5:07 pm ad1c9bdddfhttps://brainmass.com/economics/banking/excess-reserves-29969
Solution Preview
Excess reserves are the amount of bank reserves over and above those that the Federal Reserve System requires a bank to keep. Excess reserves are what banks use to make loans. If a ...
Solution Summary
Excess reserves are demonstrated.
$2.49