If a bank receiving a new deposit of $200,000 would be able, as a result, to increase their lending by at most $150,000, then the required reserve ratio equals:

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The required reserve ratio is the percentage of deposits that banks are required to hold in reserve and cannot lend out. If the bank can increase its lending by at most $150,000 with a $200,000 deposit, then it must hold $50,000 (i.e. $200,000 - $150,000) in reserves, which is 25% of the deposit. Therefore, the required reserve ratio is 25%.

If a Bank Receiving a New Deposit of $200,000 Would