Suppose that the reserve ratio is 5 percent and that a bank has $3000 in deposits.What are its required reserves?
A)$50
B)$150
C)$500
D)$1500

Name: Suppose that the reserve ratio is 5 percent and that a bank has $3000 in deposits.What are its required reserves? A)$50 B)$150 C)$500 D)$1500
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Question

Quizplus · Accepted Answer

The required reserves are calculated by multiplying the reserve ratio by the total deposits. 5% of $3000 is $150.

Suppose That the Reserve Ratio Is 5 Percent and That