Amount of required reserves

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Reference no: EM131393613

Suppose the required reserve ratio is 20%. If a bank has a total deposit of $200 and total assets of $1000, the amount of required reserves is

$40.00

$160.00

$200.00

$1200.00

The deposit multiplier is

set by the Fed.

positively related to the number of deposits.

positively related to the required reserve ratio.

negatively related to the required reserve ratio.

Reference no: EM131393613

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