Answered: A bank has $25 million in deposits and…

A bank has $25 million in deposits and maintains a reserve ratio of 0.2. What are its total reserves in millions of dollars?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section12.3: How Banking Developed

Problem 2ST

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A bank has $25 million in deposits and maintains a reserve ratio of 0.2. What are its total reserves in millions of dollars?

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