Suppose that the legal reserve ratio sit by the Fed is 10% and that the fair playing in fair dealing Missouri initially has checkable deposit equal to $240 and a reserved account of $70

56

Explanation:

Step 1 :Calculate the required reserve

Required reserve =(240+100)*10%=34

Step 2 :Calculate the reserve held by bank

(70+100)*20%=90

Step 3 :Calculate the excess reserve which is Required reserve- reserve held by bank

=90-34 =56

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