If the Federal Reserve sets a required reserve ratio of 0.2 and a bank has $100 million

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If the Federal Reserve sets a required reserve ratio of 0.2 and a bank has $100 million in loans and $80 million in deposits, what is the level of required reserves for the bank?

a $100 million

b. $16 million

c. $80 million

d. $20 million

e. $36 million

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Introduction To Economics Social Issues And Economic Thinking

ISBN: 9780470574782

1st Edition

Authors: Wendy A. Stock

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Question Posted: Oct 28, 2023 07:12 AM

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If the Federal Reserve sets a required reserve ratio of 0.2 and a bank has $100 million

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Introduction To Economics Social Issues And Economic Thinking

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