Scenario: Amateur Bank is just starting out and has had the following transactions:
• Amateur Bank takes out a $3,000 loan from Pro Bank.
• Amateur bank has $2,500 invested in building and operations.
• Suzie deposits $1,200.
• Joe deposits $750.
• Robbie takes out a loan for $900.
• Jackie takes out a business loan for $625.
• Amateur Bank invests $1,000 in GoPro.
-Refer to the scenario above.If the required reserve ratio is 10 percent,then how much must Amateur bank keep in its reserves?
A) $75
B) $120
C) $195
D) $285
Correct Answer:
Verified
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