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Greeley [361]
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]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>
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