Answer to Question #107972 in Macroeconomics for Sarai

Question #107972

Checkable or Demand deposits (DD) are $50 million, and required reserves (RR) are $4 million. What is the required reserve ratio (r) ?

Expert's answer

Required reserve ratio (r) = "{RR} \/ {DD}"

r = 4,000,000 / 50,000,000

r= 0.08 or 8%

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