required reserve ratio? OA 10% OB, 20% , 4096 CD.6096 OE, 80%

Question

Question

business economics

Answer 1

Answer #1

Amount Deposited = $ 5,000

Loan Sanctioned = $ 3,500

Total addition into reserve = $ 5,000 - 3,500 = $ 1,500

Change in Excess reserve = $ 500

Required Amount to be added to reserve = $ 1500 - 500 = $ 1000

Required reserve ratio

$1000 Requiredreserveratio 100 5000$

Reserve ratio = 20%

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Answer 2

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