If a bank has $10 million in total deposits from customers, holds $3 million in reserves, and has a legal reserve requirement of 20% imposed by the Fed, which statement is TRUE? The bank's actual reserve ratio is 30%, and the bank is not fully loaned-up. The bank's actual reserve ratio is 30%, and the bank is fully loaned-up. The bank's actual reserve ratio is 20%, and the bank is fully loaned-up. The bank's actual reserve ratio is 20%, and the bank is not fully loaned-up.
If a bank has $10 million in total deposits from customers, holds $3 million in reserves, and has a legal reserve requirement of 20% imposed by the Fed, which statement is TRUE? The bank's actual reserve ratio is 30%, and the bank is not fully loaned-up. The bank's actual reserve ratio is 30%, and the bank is fully loaned-up. The bank's actual reserve ratio is 20%, and the bank is fully loaned-up. The bank's actual reserve ratio is 20%, and the bank is not fully loaned-up.
Chapter13: Monetary Policy
Section: Chapter Questions
Problem 8E
Related questions
Question
If a bank has $10 million in total deposits from customers, holds $3 million in reserves, and has a legal reserve requirement of 20% imposed by the Fed, which statement is TRUE?
The bank's actual reserve ratio is 30%, and the bank is not fully loaned-up.
The bank's actual reserve ratio is 30%, and the bank is fully loaned-up.
The bank's actual reserve ratio is 20%, and the bank is fully loaned-up.
The bank's actual reserve ratio is 20%, and the bank is not fully loaned-up.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
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