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

If the required reserve ratio is 25 percent, the bank must keep 25 percent of its deposits as reserves. Assuming the bank has $10,000 in deposits, it would need to keep $2,500 on reserve (25% of $10,000).