Exhibit 14-1
Exhibit 14-1 -Refer to Exhibit 14-1

Exhibit 14-1
Exhibit 14-1
$\begin{array}{llll}&&\text {EUBANK}\\\text {Assets }&&\text {Liabilities and Net Worth }\\\hline\text { Deposits at the Fed } & \$ 40,000 &\text {Checkable deposits }&\$500,000\\\text { Cash } & \$ 10,000 &\text {Net Worth }&\$20,000\\\text { Loans } & \$ 300,000 \\\text { Securities } & \$ 150,000 \\\text { Fed Stock } & \$ 20,000\end{array}$
-Refer to Exhibit 14-1.Assume the required reserve ratio is 10%.If Stu Dent deposits $10,000 in cash into his checkable deposit account,how much will Eubank have in excess reserves?

A) $10,000
B) $1,000
C) $9,000
D) $60,000
E) $6,000

Correct Answer:

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