A bank's required reserves are calculated by multiplying ________. a. its deposits by the required reserve ratio b. the sum of its deposits and cash in its vault by the reserve ratio c. cash in its vault by the required reserve ratio d. the gold in its vault by the reserve ratio
A bank's required reserves are calculated by multiplying ________. a. its deposits by the required reserve ratio b. the sum of its deposits and cash in its vault by the reserve ratio c. cash in its vault by the required reserve ratio d. the gold in its vault by the reserve ratio
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Money, Banking And The Financial System
Section12.3: How Banking Developed
Problem 2ST
Related questions
Question
A bank's required reserves are calculated by multiplying ________.
a. its deposits by the required reserve ratio
b. the sum of its deposits and cash in its vault by the reserve ratio
c. cash in its vault by the required reserve ratio
d. the gold in its vault by the reserve ratio
Expert Solution
Step 1
Option A
Required Reserves = Deposits * Required Reserve Ratio
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning