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Score: 0 of 1 pt 7 of 15 (14 completely HW Score: 77.22. 11.56 of 15 pts End of Chapter 2.6 I Question Help Suppose the Natio
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Answer #1

- National Bank of Guerneville's checkable deposits  = $ 33 million

Required Reserve Ratio for checkable deposits = 10%

Reserve required for National Bank of Guerneville's checkable deposits = $ 33 million*10%

= $ 3.3 million

Reserve already created = $ 4 million

Excess reserve for National Bank of Guerneville's checkable deposits = Reserve created - Required reserve

= $ 4 million - $ 3.3 million

= $ 0.7 million

- Commonwealth Bank's checkable deposits  = $ 45 million

Required Reserve Ratio for checkable deposits = 10%

Reserve required for Commonwealth Bank's checkable deposits = $ 45 million*10%

= $ 4.5 million

Reserve already created = $ 5 million

Excess reserve for Commonwealth Bank's checkable deposits = Reserve created - Required reserve

= $ 5 million - $ 4.5 million

= $ 0.5 million

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