Scenario 16-2
Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%.
-Refer to Scenario 16-2.As a result of Kristy's deposit,Bank A's required reserves increase by

Question

Quizplus · Accepted Answer

The required reserve ratio is 20%, so Bank A must keep 20% of Kristy's $10,000 deposit as reserves. Therefore, the required reserves increase by $10,000 * 0.20 = $2,000.

Scenario 16-2 Imagine That Kristy Deposits $10,000 of Currency into Her Checking