if a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve…

if a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 15 percent receives a deposit of $600, it has a\n$600 increase in excess reserves and no increase in required reserves.\n$600 increase in required reserves and no increase in excess reserves.\n$510 increase in excess reserves and a $90 increase in required reserves.\n$90 increase in excess reserves and a $510 increase in required reserves.

if a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 15 percent receives a deposit of $600, it has a\n$600 increase in excess reserves and no increase in required reserves.\n$600 increase in required reserves and no increase in excess reserves.\n$510 increase in excess reserves and a $90 increase in required reserves.\n$90 increase in excess reserves and a $510 increase in required reserves.

Answer

Explanation:

Step1: Calculate required reserves

The required - reserve ratio $r = 15%=0.15$, and the new deposit $D = 600$. The formula for required reserves $RR$ is $RR=r\times D$. So, $RR = 0.15\times600=90$.

Step2: Calculate excess reserves

The bank desires to hold no excess reserves and just meets the required - reserve ratio. When it receives a new deposit, the amount of the new deposit that is not required reserves is zero. Since the bank wants to hold no excess reserves, the excess reserves $ER$ increase by $0$ and the required reserves increase by the amount calculated above.

Answer:

No increase in excess reserves and a $90$ increase in required reserves, so the correct answer is: A bank that desires to hold no excess reserves and has just enough reserves to meet the required - reserve ratio of 15 percent and receives a deposit of $600$ has a $$90$ increase in required reserves and no increase in excess reserves. So the answer is the second option: $$600$ increase in required reserves and no increase in excess reserves.