To calculate required reserves,you must multiply the required reserve ratio by the amount of transactions account balances on the bank's balance sheet.
A bank must hold the required reserves as determined by the Fed; this is a percentage or fraction of its total deposits.

Question

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This statement is true. Banks are required to hold a percentage of their total deposits as reserves, which is determined by the Federal Reserve's required reserve ratio. The calculation for required reserves involves multiplying this ratio by the amount of transactions account balances on the bank's balance sheet.

To Calculate Required Reserves,you Must Multiply the Required Reserve Ratio