The commercial banking system, because of a recent change in the required reserve ratio from 8 percent to 10 percent, finds that

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3 years ago

13

The commercial banking system, because of a recent change in the required reserve ratio from 8 percent to 10 percent, finds that

it is $50 million short of reserves. if it is unable to obtain any additional reserves, it must reduce deposits and money supply by

Business

1 answer:

Rainbow [258] · Answer 1 · 2022-09-06T14:55:05+03:00

Rainbow [258]3 years ago

3 0

<span>If it is unable to obtain any additional reserves, it must reduce deposits and money supply by $500 Million.
$50 Million x 10 = $500 Million.
(10% of $500 Million = $50 Million)</span>