A bank's reserve ratio is 10 percent and the bank has $2,000 in deposits. Its reserves amount to

Name: A bank's reserve ratio is 10 percent and the bank has $2,000 in deposits. Its reserves amount to
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A bank's reserve ratio is the percentage of deposits that the bank is required to keep in reserve as cash or deposits with the central bank. In this case, the reserve ratio is 10%, so the bank's required reserves are 10% of $2,000, which is $200. Therefore, the reserves amount to $200.

A Bank's Reserve Ratio Is 10 Percent and the Bank