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Required and excess reserves

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Required and excess reserves

Suppose that Best National Bank currently has $200,000 in checkable deposits and $130,000 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Using these values, fill in the empty cells for reserves, required reserves, and excess reserves in the following table.

Best National

Reserves

Required Reserves

Excess Reserves

(Dollars)

(Dollars)

(Dollars)

Reference no: EM131692286

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