KA bank holds $10 for every $100 in deposits.The bank wants to hold $8 for every $100 in deposits.The bank holds actual reserves of $18,000 and excess reserves of $8,000What is the actual reserve ratio, the desired reserve ratio, and the desired reserves?>>> Answer to 2 decimal placesThe actual reserve ratio isThe desired reserve ratio isThe desired reserves are S

The reserve ratio is the percentage of a commercial bank’s deposits that must be kept in cash as a…

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The actual reserve ratio is The desired reserve ratio is The desired reserves are S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

K
A bank holds $10 for every $100 in deposits.
The bank wants to hold $8 for every $100 in deposits.
The bank holds actual reserves of $18,000 and excess reserves of $8,000
What is the actual reserve ratio, the desired reserve ratio, and the desired reserves?
>>> Answer to 2 decimal places
The actual reserve ratio is
The desired reserve ratio is
The desired reserves are S

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Step 3: Determine the desired reserve ratio.

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Step 4: Determine the desired reserves.

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