A bank determines that it is prudent to hold $4 for every $100 in deposits. The bank holds surplus reserves of $12,000 and actual reserves of $15,000. What are the bank's desired reserve ratio and its desired reserves? The bank's desired reserve ratio is (BLANK) % Its desired reserves is $ (BLANK)
A bank determines that it is prudent to hold $4 for every $100 in deposits. The bank holds surplus reserves of $12,000 and actual reserves of $15,000. What are the bank's desired reserve ratio and its desired reserves? The bank's desired reserve ratio is (BLANK) % Its desired reserves is $ (BLANK)
Chapter15: Money Creation
Section: Chapter Questions
Problem 19SQ
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A bank determines that it is prudent to hold $4 for every $100 in deposits.
The bank holds surplus reserves of $12,000 and actual reserves of $15,000.
What are the bank's desired reserve ratio and its desired reserves?
The bank's desired reserve ratio is (BLANK) %
Its desired reserves is $ (BLANK)
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