QuestionAugust 17, 2025

A bank's reserve ratio is 6.5 percent and the bank has 1,950 in reserve. Its deposits amount to A 62.25 B 126.75 C 22,500.00 D 30,000.00

A bank's reserve ratio is 6.5 percent and the bank has 1,950 in reserve. Its deposits amount to A 62.25 B 126.75 C 22,500.00 D 30,000.00
A bank's reserve ratio is 6.5 percent and the bank has 1,950 in reserve. Its deposits amount to
A 62.25
B 126.75
C 22,500.00
D 30,000.00

Solution
4.5(319 votes)

Answer

D \ 30,000.00 Explanation 1. Identify the reserve ratio formula The reserve ratio is given by **Reserve Ratio = \frac{Reserves}{Deposits}**. 2. Rearrange the formula to find deposits Rearrange to get **Deposits = \frac{Reserves}{Reserve Ratio}**. 3. Calculate deposits Substitute the values: Deposits = \(\frac{1950}{0.065}\).

Explanation

1. Identify the reserve ratio formula<br /> The reserve ratio is given by **Reserve Ratio = \frac{Reserves}{Deposits}**.<br />2. Rearrange the formula to find deposits<br /> Rearrange to get **Deposits = \frac{Reserves}{Reserve Ratio}**.<br />3. Calculate deposits<br /> Substitute the values: Deposits = \(\frac{1950}{0.065}\).
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