Suppose that the reserve ratio is 9 percent and that a bank has $3000 in deposits. What are its required reserves?
A) $90
B) $270
C) $333
D) $1730

Name: Suppose that the reserve ratio is 9 percent and that a bank has $3000 in deposits. What are its required reserves? A) $90 B) $270 C) $333 D) $1730
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Question

Quizplus · Accepted Answer

Required reserves are calculated by multiplying the reserve ratio (9%) by the amount of deposits ($3000):
$3000 x 0.09 = $270. Therefore, the correct answer is B.

Suppose That the Reserve Ratio Is 9 Percent and That