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Exhibit: Reserves, Loans, and Money

-(Exhibit: Reserves, Loans, and Money) The required reserve ratio is 10%. What is the amount of Bolton Bank's required reserves?
A) $30 million
B) $70 million
C) $100 million
D) $300 million

Question

Use the following to answer questions .
Exhibit: Reserves, Loans, and Money
 
-(Exhibit: Reserves, Loans, and Money) The required reserve ratio is 10%. What is the amount of Bolton Bank's required reserves?
A) $30 million 
B) $70 million 
C) $100 million 
D) $300 million

Quizplus · Accepted Answer

The required reserve ratio is 10%, so Bolton Bank's required reserves would be 10% of its total deposits. If the total deposits are $300 million, then the required reserves would be 10% of $300 million, which is $30 million.

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