A small state bank currently has reserves equal to $300,000. If the state reserve requirement is 20%, but the bank feels more comfortable with maintaining a 30% reserve, what amount of deposits does the bank currently have? Group of answer choices $1,500,000 $600,000 $1,000,000 $300,000

A small state bank currently has reserves equal to $300,000. If the state reserve requirement is 20%, but the bank feels more comfortable with maintaining a 30% reserve, what amount of deposits does the bank currently have? Group of answer choices $1,500,000 $600,000 $1,000,000 $300,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A small state bank currently has reserves equal to $300,000. If the state reserve requirement is
20%, but the bank feels more comfortable with maintaining a 30% reserve, what amount of
deposits does the bank currently have?

Group of answer choices

$1,500,000

$600,000

$1,000,000

$300,000

None of the above.

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