Answer the question on the basis of the following consolidated balance sheet for the commercial banking system.Assume the required reserve ratio is 10 percent.All figures are in billions. $\begin{array}{c}
\begin{array}{lll}
\quad\quad\quad\underline{\text { Assets}}\
\text { Reserves}\
\text { Securities}\
\text { Loans}\
\text { Property}
\end{array}
\begin{array}{l}
\
\$30\
130 \
70\
200
\end{array}
\begin{array}{lll}
\quad\quad \underline{\text { Liabilities \& Net Worth }}\
\text { Checkable Deposits}\
\text { Stock Shares}\
\
\
\end{array}
\begin{array}{lll}
\
\$300\
130\
\
\
\end{array}
\end{array}$

Refer to the data.The commercial banking system has excess reserves of:
A) $0 billion.
B) $30 billion.
C) $60 billion.
D) $70 billion.

Question

Answer the question on the basis of the following consolidated balance sheet for the commercial banking system.Assume the required reserve ratio is 10 percent.All figures are in billions. $\begin{array}{c}
\begin{array}{lll}
\quad\quad\quad\underline{\text { Assets}}\
\text { Reserves}\
\text { Securities}\
\text { Loans}\
\text { Property} 
\end{array}
\begin{array}{l}
\
\$30\
130 \
70\
200
\end{array}
\begin{array}{lll}
\quad\quad \underline{\text { Liabilities \& Net Worth }}\
\text { Checkable Deposits}\
\text {  Stock Shares}\
\
\
\end{array}
\begin{array}{lll}
\
\$300\
130\
\
\
\end{array}
\end{array}$

Refer to the data.The commercial banking system has excess reserves of:
A) $0 billion.
B) $30 billion.
C) $60 billion.
D) $70 billion.

Quizplus · Accepted Answer

The required reserves are 10% of checkable deposits, which is $30 billion. Since the actual reserves are also $30 billion, there are no excess reserves.

Answer the Question on the Basis of the Following Consolidated