Answered: ank of New City has $750 million in…

ank of New City has $750 million in deposits. The required reserve ratio is 15%. Bank of New City must keep_______ in reserves. $150.5 million $60.5 million $112.5 million $160.5 million

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 30P: A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It...

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Question

20.

Bank of New City has $750 million in deposits. The required reserve ratio is 15%.

Bank of New City must keep_______ in reserves.

$150.5 million
$60.5 million
$112.5 million
$160.5 million

Definition Definition Minimum amount that a commercial bank must hold in liquid assets in order to fulfill central bank regulations.

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