Percentage, hope that helps
Answer:
Cash for $475 and Credit Card Expense for $25
Explanation:
Cash for $475 and Credit Card Expense for $25
Answer:
$100 in bank A
$900 in bank B
Explanation:
Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.
- bank A = $1,000 x 10% = $100
- bank B = $1,000 x 90% = $900
If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.