The required reserves of a bank equal its ________ the required reserve ratio.

Question

Quizplus · Accepted Answer

Required reserves are the portion of deposits that banks are required to hold in reserve either in cash or on deposit with the central bank. The calculation of required reserves is determined by multiplying the deposits of the bank by the required reserve ratio set by the central bank. Therefore, the required reserves of a bank equal its deposits multiplied by the required reserve ratio.

The Required Reserves of a Bank Equal Its ________ the Required