Ask Question
23 March, 04:38

Suppose that there is a checkable deposit intoYourBank. Which of the following statements is an accurate description of the changes that occur at YourBank? A. The required reserves decrease by the amount of the deposit times the required reserve ratio. B. The required reserves increase by the amount of the deposit. C. The required reserves increase by the amount of the deposit times the required reserve ratio. D. The excess reserves increase by the amount of the deposit times the required reserve ratio.

+1
Answers (1)
  1. 23 March, 07:56
    0
    Answer: Option (C) is correct.

    Explanation:

    The required reserves are the reserves that banks have to keep it with central bank. Required reserves are the fraction of Check-able deposits. The required reserves are determined by multiplying the deposited amount with the required reserve ratio.

    Required reserves = Deposited amount * Required reserve ratio

    Required reserve ratio is set by the central bank.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that there is a checkable deposit intoYourBank. Which of the following statements is an accurate description of the changes that ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers