Excess reserves
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
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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.
$2.19