alleryStart learning →The Federal Reserve requires Singleton Bank to keep what share of its $10 million deposits on reserve?
A25 per cent
B1 per cent
C10 per cent
D50 per cent
Answer & Solution
Correct answer: C. 10 per cent
1. That is $1 million on reserve.
2. The requirement is 10 per cent.
3. The rest can be lent, creating money.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 13, Money and Banking (CC BY 4.0)._
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