Suppose that third national bank has reserves of 20000 and, Ask an Expert

Economics

Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is 10 percent. The bank sells $15,000 in securities to the Federal Reserve Bank in its district, receiving a $15,000 increase in reserves in return.

Instructions: Enter your answer as a whole number.

What level of excess reserves does the bank now have?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91673370

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