Exeter Bank has $100 million in checkable deposits and $10 million in net worth. With a 10% reserve requirement, Exeter Bank must maintain ______ in reserves.

Name: Exeter Bank has $100 million in checkable deposits and $10 million in net worth. With a 10% reserve requirement, Exeter Bank must maintain ______ in reserves.
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Question

Quizplus · Accepted Answer

With a 10% reserve requirement, Exeter Bank must maintain 10% of its $100 million in checkable deposits as reserves, which is $10 million.

Exeter Bank Has $100 Million in Checkable Deposits and $10