Question

The reserve requirement is 15 percent. Lucy deposits $600 into a bank. By how much do excess reserves change

Answer 1

$510

Step-by-step explanation:

Calculation for By how much do excess reserves change

Using this formula

Change in excess reserve= Bank Deposits-(Reserve requirement*Deposit)

Let plug in the formula

Change in excess reserve=$600-($600*15%)

Change in excess reserve=$600-$90

Change in excess reserve=$510

Therefore By how much do excess reserves change is $510