The reserve ratio is 5 percent. If the bank receives a customer deposit of $100,000, then an immediate effect is

Name: The reserve ratio is 5 percent. If the bank receives a customer deposit of $100,000, then an immediate effect is
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The reserve ratio is 5%, which means the bank must keep 5% of the deposit as reserves. Therefore, 5% of $100,000 = $5,000. This amount would be added to the bank's reserves, while the remaining $95,000 would become part of the bank's total assets and total liabilities.

The Reserve Ratio Is 5 Percent