Use the following to answer questions:
-(Table: ABC Bank's Balance Sheet)Refer to 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)Refer to 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 requirement is calculated as 10% of the bank's total deposits. If the total deposits are $100 million, then the required reserves would be 10% of $100 million, which is $10 million.

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