First National Bank has $80 million in checkable deposits, $15 million in deposits with the Federal Reserve, $5 million cash in the bank vault and $5 million in government bonds. Consider the information for First National Bank. If the reserve ratio is 20%, what are the excess reserves available for the bank to lend

$64 million

Explanation:

Deposit = $80 million

Reserved Required Ration = 20%(0.20)

Firstly, we have to calculate Reserve Requirements before we can calculate the excess reserve.

Reserve Requirements= (Deposit x Reserve Requirements Ratio).

Reserve Requirements= ($80million x 0.2)

Reserve Requirements= $16million

Therefore,

Eccess Reserve = ( Deposit - Reserve Requirements)

Eccess Reserve= ( $80million - $16million)

Eccess Reserve = $64million

The amount of Excess Reserve which can be loaned out is $64million

answer; the correct answer should be (demonstrations); good luck

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3