If a commercial bank has checkable deposits of $150,000 and the required reserve ratio is set at 10%, the commercial bank must hold how much in reserves?

Question

Quizplus · Accepted Answer

The required reserve ratio is set at 10%, which means the commercial bank must hold 10% of its checkable deposits in reserves. Therefore, the bank must hold $15,000 in reserves (10% of $150,000).

If a Commercial Bank Has Checkable Deposits of $150,000 and the Required