145k views
4 votes
Bank A has checkable deposits of $10 million and total reserves of $1 million. The required reserve ratio is 9 percent. The bank has required reserves of Group of answer choices $90,000. $1,000,000. There is not enough information provided to answer this question. $900,000. $910,000.

1 Answer

1 vote

Answer: $900000

Step-by-step explanation:

The following can be deduced from the information given:

Checkable Deposits = $10 million

Total Reserves = $1 million

Required Reserve Ratio = 9%

Required reserves will be:

= required reserve ratio × checkable deposits

= 9% × $10 million

= 0.09 × $10 million

= $900,000.

User Aaron Rasmussen
by
3.3k points