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A bank's reserve ratio is 8 percent and the bank has $1,000 in deposits. Its reserves...

A bank's reserve ratio is 8 percent and the bank has $1,000 in deposits. Its reserves amount to

Group of answer choices

$80

$920

$8

$92

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Answer #1

Answer Option a ) $80

Reserve amount is $80

Solution Reserve ratio of bank is 8%

Total deposits of bank is $1000

Reserve amount= 8%of 1000

Reserve amount= $80

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