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

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

Quizplus · Accepted Answer

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

Suppose That the Reserve Ratio Is 5 Percent and That