Table 29-5.
-Refer to Table 29-5. If the bank faces a reserve requirement of 20 percent, then it
A)has $10,000 of excess reserves.
B)needs $10,000 more reserves to meet its reserve requirements.
C)needs $20,000 more reserves to meet its reserve requirements.
D)just meets its reserve requirement.

Question

Table 29-5. 
-Refer to Table 29-5. If the bank faces a reserve requirement of 20 percent, then it
A)has $10,000 of excess reserves. 
B)needs $10,000 more reserves to meet its reserve requirements. 
C)needs $20,000 more reserves to meet its reserve requirements. 
D)just meets its reserve requirement.

Quizplus · Accepted Answer

The Answer of Table 29-5. 
-Refer to Table 29-5. If the bank faces a reserve requirement of 20 percent, then it
A)has $10,000 of excess reserves. 
B)needs $10,000 more reserves to meet its reserve requirements. 
C)needs $20,000 more reserves to meet its reserve requirements. 
D)just meets its reserve requirement.

Table 29-5. -Refer to Table 29-5. If the Bank Faces a Reserve