If the desired reserve ratio is 3 percent and deposits totaled $575 billion, banks would hold
A) $534.75 in reserves.
B) $17.25 billion in unplanned reserves.
C) $1,725 billion in currency.
D) $17.25 billion in reserves.

Question

Quizplus · Accepted Answer

To calculate the reserves banks would hold with a desired reserve ratio of 3 percent, multiply the total deposits by the reserve ratio: $575 billion * 0.03 = $17.25 billion.

If the Desired Reserve Ratio Is 3 Percent and Deposits