Exhibit 19-7 Lower Walloon National Bank In Exhibit 19-7, if the required reserve ratio is increased to 25 percent, the Lower Walloon National bank needs to keep:

Question

Exhibit 19-7  Lower Walloon National Bank  In Exhibit 19-7, if the required reserve ratio is increased to 25 percent, the Lower Walloon National bank needs to keep:

Quizplus · Accepted Answer

The required reserve ratio of 25 percent means that the bank needs to keep 25 percent of its deposits on reserve. The bank has $10,000 in deposits, so it needs to keep 25 percent of that ($2,500) on reserve at all times.

Exhibit 19-7 Lower Walloon National Bank in Exhibit 19-7, If