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Assume that the reserve requirement is 25%. Answer the following questions based on this information. 1. Joe deposits $10,000 in Bank A. How much will Bank A have to keep in reserves
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Assume that the reserve requirement is 25%. Answer the following questions based on this information. 1. Joe deposits $10,000 in Bank A. How much will Bank A have to keep in reserves

User Elba
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1 Answer

10 votes

Answer:

$2500

Step-by-step explanation:

Reserve requirement is the compulsory sum of money that Central Banks require banks to keep as reserves to meet unforeseen circumstances

Reserve = reserve requirement x amount deposited

0.25 x $10,000 = $2500

User MRD
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