Respuesta :
The required reserve ratio comes out to be 10% when the bank deposits are $1,000 and the reserves deposited with the central bank are $100.
What are the required reserves?
The minimum reserves that are required to be kept by the banks with the central bank are required reserves. It is one of the bank reserves that need to be maintained by banks.
Given values:
Amount of bank deposits= $1,000
Amount of reserves deposited with the central bank=$100
Computation of required reserve ratio:
[tex]\rm\ Required \rm\ reserve \rm\ ratio=\frac{\rm\ Reserves \rm\ deposited \rm\ with \rm\ the \rm\ central \rm\ bank}{ \rm\ bank \rm\ deposits} \\\rm\ Required \rm\ reserve \rm\ ratio=\frac{\$100}{\$1,000} \\\rm\ Required \rm\ reserve \rm\ ratio=10\%[/tex]
Therefore, when the amount deposited with the central bank is $100 and the bank deposits are $1,000, then 10% is the required reserve ratio to be maintained.
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