Suppose that the reserve ratio is 9 percent and that a bank has $2000 in deposits.What are its required reserves?
A) $100
B) $120
C) $140
D) $180

Name: Suppose that the reserve ratio is 9 percent and that a bank has $2000 in deposits.What are its required reserves? A) $100 B) $120 C) $140 D) $180
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Question

Quizplus · Accepted Answer

The required reserves are calculated by multiplying the reserve ratio by the total deposits. So, 9% of $2000 is $180.

Suppose That the Reserve Ratio Is 9 Percent and That