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horrorfan [7]
3 years ago
15

Suppose a bank has $600 million in deposits and $30 million in required reserves, and it is holding no excess reserves. What is

the required reserve ratio
Business
1 answer:
Kruka [31]3 years ago
7 0

Answer:

5%

Explanation:

Deposit= $600 million

Required reserve= $30 million

Required reserve ratio= required Reserve/deposit

= 30 million/600 million

= 0.05×100

= 5%

Hence the required reserve ratio is 5%

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