Scenario 14-2
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 14-2.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 is required to hold 20% of Kristy's deposit as reserves. Therefore, Bank A's required reserves increase by $2,000 (20% of $10,000) when Kristy deposits $10,000 into her checking account at the bank.

Scenario 14-2 Imagine That Kristy Deposits $10,000 of Currency into Her Checking