Use the following to answer questions:
-(Table: ABC Bank's Balance Sheet) Look at the table ABC Bank's Balance Sheet. If the minimum reserve ratio for ABC Bank is 10%, then the bank is required to maintain minimum reserves of:

Question

Use the following to answer questions: 
-(Table: ABC Bank's Balance Sheet) Look at the table ABC Bank's Balance Sheet. If the minimum reserve ratio for ABC Bank is 10%, then the bank is required to maintain minimum reserves of:

Quizplus · Accepted Answer

The minimum reserve ratio is 10%, so the bank is required to maintain minimum reserves of 10% of its demand deposits. Demand deposits are $150 million, so the bank is required to maintain minimum reserves of $15 million.

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