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If a bank had demand deposits of $50 million and it faced a 25 percent reserve requirement, it would be required to have how many reserves
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If a bank had demand deposits of $50 million and it faced a 25 percent reserve requirement, it would be required to have how many reserves

User MuriloKunze
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1 Answer

4 votes

Answer:

$12.5 million

Step-by-step explanation:

The computation of the number of reserves required is shown below:

= Demand deposits × reserve requirement

= $50 million × 25%

= $12.5 million

We simply applied the demand deposits with the reserve requirement so that the number of reserve required could come

User Joe Belladonna
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