CFA Practice Question
If reserve requirements are 10% how much must a bank be required to keep on reserve if it has $2,000,000 of deposits and $1,000,000 of loans?
A. $200,000.
B. $100,000.
C. Nil.
Explanation: 10% of the deposit amount.
User Contributed Comments 2
| User | Comment |
|---|---|
| ColonelCFA | nuff said |
| praj24 | and it's Shutdown! |