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1 year ago

Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerical Bank.

Business

1 answer:

exis [7]1 year ago

4 0

The total decrease in deposits in the banking system is $250,000.

<h3>What is total decrease in deposits?</h3>

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves.

Decrease in deposits = amount withdrawn / required reserve ratio

$25,000 / 0.1 = $250,000

To learn more about reserve ratio, please check: brainly.com/question/6831267

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