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goldenfox [79]
2 years ago
7

If the reserve ratio is 20% and a bank accepts $10,000 in demand deposits from the public, then it would have to keep ______ in

reserves.
Business
1 answer:
Iteru [2.4K]2 years ago
3 0

If the reserve ratio is 20% then the amount that a bank would keep in reserves after accepting the demand deposits is $2,000.

<h3>How much would the bank keep?</h3><h3 />

The reserve ratio refers to the percentage of deposits that banks have to keep as reserves in the Fed.

If this rate is 20%, the bank would therefore have to keep:

= 10,000 x 20%
= $2,000

In conclusion, the bank would keep $2,000.

Find out more on the reserve ratio at brainly.com/question/13758092.

#SPJ1

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