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 3 years ago
A small state bank currently has reserves equal to $300,000. If the state reserve requirement is
20%, but the bank feels more comfortable with maintaining a 30% reserve, what amount of deposits does the bank currently have?
a. $1,500,000
b. $600,000
c. $1,000,000
d. $300,000
e. None
of the above.
 3 years ago
A small state bank currently has reserves equal to $300,000. If the state reserve requirement is 20%, but the bank feels more comfortable with maintaining a 30% reserve, what amount of deposits does the bank currently have? a. $1,500,000 b. $600,000 c. $1,000,000 d. $300,000 e. None of the above.

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amistre64
 3 years ago
Best ResponseYou've already chosen the best response.0reserve = deposits(requirement) 300,000 = D(.3) 300,000/.3 = D D = 3,000,000/3 = 1,000,000
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