How much in excess reserves does bank have


Use the information in the bank balance sheet below to answer the following question. The reserve requirement ratio is 0.25, or 25%. (The reserve requirement ratio is the minimum value of the ratio of bank reserves to bank deposits.)

Assets Liabilities
Reserves $1,200 Deposits $4,000
Loans $2,800

Total $4,000 Total $4,000

How much in excess reserves does this bank have?

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Microeconomics: How much in excess reserves does bank have
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