Suppose the desired reserve ratio is 10 percent. If the Commerce Bank has total deposits of $20,000, total assets of $10,000, and actual reserves of $8000, the amount of excess reserves is
A)$2,000.
B)$6,000.
C)$0.
D)$100.
E)$800.

Question

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The Answer of Suppose the desired reserve ratio is 10 percent. If the Commerce Bank has total deposits of $20,000, total assets of $10,000, and actual reserves of $8000, the amount of excess reserves is
A)$2,000.
B)$6,000.
C)$0.
D)$100.
E)$800.

Suppose the Desired Reserve Ratio Is 10 Percent