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If the Reserve Requirement is 10 percent, then what does this mean? Multiple Choice This means that banks cant lend out more

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Ans:-This means that bank must hold 10 percentage of depositors money as cash

Explanation:- The required reserve ratio provides the percentage of deposits that bank must hold as reserves .It is the percentage of required reserve to deposits.The required reserve ratio is 10% this means the bank must hold 10% of their deposit as required reserves

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