Table 9-4
Acme Bank: Partial Balance Sheet
(All figures in $ million)

-Refer to Table 9-4. Assume Acme Bank initially has no excess reserves. If Guevara withdraws $6,000 from her checking account at Acme Bank, which of the following will occur?
A) Acme's excess reserves are reduced by $6,000.
B) Acme will have excess reserves of $2,000.
C) Acme will have a required reserve deficiency of $3,000.
D) Acme will have a required reserve deficiency of $5, 400.

Question

Table 9-4
Acme Bank: Partial Balance Sheet
(All figures in $ million)
 
-Refer to Table 9-4. Assume Acme Bank initially has no excess reserves. If Guevara withdraws $6,000 from her checking account at Acme Bank, which of the following will occur?
A) Acme's excess reserves are reduced by $6,000. 
B) Acme will have excess reserves of $2,000. 
C) Acme will have a required reserve deficiency of $3,000. 
D) Acme will have a required reserve deficiency of $5, 400.

Quizplus · Accepted Answer

The Answer of Table 9-4
Acme Bank: Partial Balance Sheet
(All figures in $ million)
 
-Refer to Table 9-4. Assume Acme Bank initially has no excess reserves. If Guevara withdraws $6,000 from her checking account at Acme Bank, which of the following will occur?
A) Acme's excess reserves are reduced by $6,000. 
B) Acme will have excess reserves of $2,000. 
C) Acme will have a required reserve deficiency of $3,000. 
D) Acme will have a required reserve deficiency of $5, 400.

Table 9-4 Acme Bank: Partial Balance Sheet