Homework Answers
Given that Reserve Requirement is 25% and the amount in reserves is $20000 , and also as per defination of of reserve requirement is applicable on deposits.
So, Lets deposits be $x
So 25% of x = $20000
therefore x = 20000/.25 = $80000
Note - As given there is no excess reserve
So deposits should be $80000
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The reserves listed on the balance sheet are reserves on deposit at
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1a)
1b) If the reserve requirement is 10% percent, how much in
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