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If a bank has $25 million in deposits and the required reserve ratio is 12 percent, the bank's ...

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If a bank has $25 million in deposits and the required reserve ratio is 12 percent, the bank's ...

Question 1.

Banks can hold required reserves either as cash or as deposits at the Fed.

▸ true

▸ false

Question 2.

If a bank has $25 million in deposits and the required reserve ratio is 12 percent, the bank's required reserves equal $3 million.

▸ true

▸ false

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

Read 80 times

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anhsu Author

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Smart ... Thanks!

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