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AP® Macroeconomics

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Calculating Required Reserve

APMACR-JFBDWD

A bank has no excess reserves and has a t-account where assets are \$15 Million in cash reserve and \$85 Million in loans. \$100 Million in demand deposits receipts are recorded on the liabilities side of the ledger.

What is the Required Reserve ratio?

A

0%

B

10%

C

15%

D

42.5%

E

85%