Refer to the information provided in Table 25.1 below to answer the question(s) that follow.
Table 25.1
-Refer to Table 25.1. The required reserve ratio is 25%. If the First Charter Bank is meeting its reserve requirement and has no excess reserves, its reserves equal

Question

Refer to the information provided in Table 25.1 below to answer the question(s) that follow.
Table 25.1 
-Refer to Table 25.1. The required reserve ratio is 25%. If the First Charter Bank is meeting its reserve requirement and has no excess reserves, its reserves equal

Quizplus · Accepted Answer

If the required reserve ratio is 25%, then the reserves must be 25% of the deposits. Assuming the deposits are $800 (since $200 is 25% of $800), the reserves would be $200 to meet the requirement with no excess reserves.

Refer to the Information Provided in Table 25