Suppose a bank receives a $5,000 deposit, and the reserve ratio is 25%. The bank is required to keep in reserve an amount equal to ?

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Suppose a bank receives a $5,000 deposit, and the
reserve ratio is 25%. The bank is required to keep in
reserve an amount equal to
?
Transcribed Image Text:Suppose a bank receives a $5,000 deposit, and the reserve ratio is 25%. The bank is required to keep in reserve an amount equal to ?
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