Suppose 25000 is deposited at a bank The required reserve ra

Suppose $25,000 is deposited at a bank. The required reserve ratio is 25 percent, and the bank chooses not to hold any excess reserves but makes loans instead What are the bank\'s total reserves? Total reserves are $1-(Round your response to the nearest dollar.)

Solution

Deposits in bank 25000 Reserve ratio 25.00% Total reserves is (25000*25%) 6250