Suppose the Required Reserve Ratio Is 10% and a Commercial

question 177

Multiple Choice

Suppose the required reserve ratio is 10% and a commercial bank has $2 million in checkable deposits appearing on the liability side of its balance sheet.How much vault cash does the bank have?

• A)$2 million
• B)$20,000
• C)$200,000
• D)Vault cash cannot be determined by the information given.

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