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Suppose a bank has $600 million in deposits and $30 million in required reserves, and it is holding no excess reserves. What is the required reserve ratio
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Suppose a bank has $600 million in deposits and $30 million in required reserves, and it is holding no excess reserves. What is the required reserve ratio

User Ajwood
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1 Answer

10 votes

Answer:

5%

Step-by-step explanation:

Deposit= $600 million

Required reserve= $30 million

Required reserve ratio= required Reserve/deposit

= 30 million/600 million

= 0.05×100

= 5%

Hence the required reserve ratio is 5%

User Jared Brown
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