A bank with transaction deposits totaling $45 million had reserves equal to $0.98 million.The reserve requirement for this bank is_____ percent.(Hint: use the cutoff amounts as per the reserve requirements for the year 2013)

Question

Quizplus · Accepted Answer

The reserve requirement is calculated as reserves divided by total deposits. So, $0.98 million / $45 million = 0.0217 or 2.17%, which rounds to approximately 3% as per the options given.

A Bank with Transaction Deposits Totaling $45 Million Had Reserves