If checkable deposits in Bank A total $300 million and the required reserve ratio is 10 percent,then required reserves at Bank A equal

Question

Quizplus · Accepted Answer

The required reserve ratio is the percentage of checkable deposits that banks must hold in reserve. In this case, the required reserve ratio is 10%, so Bank A must hold 10% of $300 million in reserve. This equals $30 million, so the correct answer is B).

If Checkable Deposits in Bank a Total $300 Million and the Required