Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Experience the ease of finding quick and accurate answers to your questions from professionals on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
The required reserve ratio comes out to be 10% when the bank deposits are $1,000 and the reserves deposited with the central bank are $100.
What are the required reserves?
The minimum reserves that are required to be kept by the banks with the central bank are required reserves. It is one of the bank reserves that need to be maintained by banks.
Given values:
Amount of bank deposits= $1,000
Amount of reserves deposited with the central bank=$100
Computation of required reserve ratio:
[tex]\rm\ Required \rm\ reserve \rm\ ratio=\frac{\rm\ Reserves \rm\ deposited \rm\ with \rm\ the \rm\ central \rm\ bank}{ \rm\ bank \rm\ deposits} \\\rm\ Required \rm\ reserve \rm\ ratio=\frac{\$100}{\$1,000} \\\rm\ Required \rm\ reserve \rm\ ratio=10\%[/tex]
Therefore, when the amount deposited with the central bank is $100 and the bank deposits are $1,000, then 10% is the required reserve ratio to be maintained.
Learn more about the required reserve ratio in the related link:
https://brainly.com/question/13981670
#SPJ1
Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.
