A bank has checkable deposits of $1,000,000,loans of $600,000,and government securities of $400,000.If the required reserve ratio is 5 percent,the amount of required reserves is

Name: A bank has checkable deposits of $1,000,000,loans of $600,000,and government securities of $400,000.If the required reserve ratio is 5 percent,the amount of required reserves is
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Question

Quizplus · Accepted Answer

Required reservs = checkable deposits x required reserve ratio
Required reserves = 1,000,000 x 0.05 = 50,000

A Bank Has Checkable Deposits of $1,000,000,loans of $600,000,and Government