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What is the amount of the required reserve

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Reference no: EM132560145

The following information is given about the Bank of Brookhaven. The deposits for the bank are $800,000. The bank has reserves of $250,000. The reserve ratio is 12.5%.

a. Provide a T account for the bank that shows the deposits, reserves, and loans for the bank.

b. What is the amount of the required reserve?

c. Does the bank have any excess reserves? If yes, how much?

d. What is the maximum amount of money the bank can loan?

e. If the reserve ratio changed to 20% would anything change?

Reference no: EM132560145

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