Question

g Suppose the total deposits in the Last Bank of Commerce are $100,000, and $20,000 of the total deposit is set aside as reserves required by the Federal Reserve. Based on this information, the required reserve ratio is:Group of answer choices.20$20,000.10.30

Answer 1

0.10

Step-by-step explanation:

The total deposits in last bank of commerce are $100,000

The total deposits set asides as reserves are $10,000

Therefore the required reserve ratio can be calculated as follows

= 10,000/100,000

= 0.10

Hence the required reserve ratio is 0.10