Answered: Bank A has $25,500 in required reserves…

Bank A has $25,500 in required reserves and the required reserves ratio is 10%. Thus its total deposits are: Group of answer choices $2,550 $2,550,000 $25,500 $255,000

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter19: Money Creation

Section: Chapter Questions

Problem 7SQ

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Question

Bank A has $25,500 in required reserves and the required reserves ratio is 10%. Thus its total deposits are:

Group of answer choices

$2,550

$2,550,000

$25,500

$255,000

Definition Definition Minimum amount that a commercial bank must hold in liquid assets in order to fulfill central bank regulations.

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