The following question refer to the table that follows. Assume that there is a fractional-reserve banking system, that the legal reserve requirements are 10 percent, and that the balance sheet for Bank X is as follows:

-Bank X has excess reserves of
A) $3,000,000.
B) $2,000,000.
C) $1,667,000.
D) $1,000,000.
E) $0.

Question

The following question refer to the table that follows. Assume that there is a fractional-reserve banking system, that the legal reserve requirements are 10 percent, and that the balance sheet for Bank X is as follows:
 
-Bank X has excess reserves of
A) $3,000,000. 
B) $2,000,000. 
C) $1,667,000. 
D) $1,000,000. 
E) $0.

Quizplus · Accepted Answer

The Answer of The following question refer to the table that follows. Assume that there is a fractional-reserve banking system, that the legal reserve requirements are 10 percent, and that the balance sheet for Bank X is as follows:
 
-Bank X has excess reserves of
A) $3,000,000. 
B) $2,000,000. 
C) $1,667,000. 
D) $1,000,000. 
E) $0.

The Following Question Refer to the Table That Follows