Suppose that the reserve ratio is 7 percent and that a bank has $3000 in deposits.What are its required reserves?
A) $50
B) $210
C) $510
D) $1200

Name: Suppose that the reserve ratio is 7 percent and that a bank has $3000 in deposits.What are its required reserves? A) $50 B) $210 C) $510 D) $1200
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

The required reserves can be calculated by multiplying the deposits by the reserve ratio. So, required reserves = $3000 x 0.07 = $210.

Suppose That the Reserve Ratio Is 7 Percent and That