Unit 4 DQ2: Bank Deposits and Reserves (version A) 1) Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A...

Deposits    +$4,000

2) Refer to table above. Suppose a transaction changes a bank's balance sheet as indicated in the T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank has excess reserves of $______.

3) Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 20 percent. If the Federal Reserve reduces the required reserve ratio to 15 percent, then the bank will now have excess reserves of $______.

1) Imagine that Kristy deposits $10,000 of currency into her checking account deposit atBank A and that the required reserve ratio is 20%. As a result of Kristy’s deposit, a) Bank A's reserves...