3. Assume that the reserve requirement is 15 percent for transaction deposits and 4 percent for nontransaction deposits. Compute the reserve requirement for a bank that has the $340 billion deposited in transaction accounts and $120 billion deposited in nontransaction accounts

Question

3.	Assume that the reserve requirement is 15 percent for transaction deposits and 4 percent for nontransaction deposits.  Compute the reserve requirement for a bank that has the $340 billion deposited in transaction accounts and $120 billion deposited in nontransaction accounts

anonymous · Answer

got it.. Transaction deposits = 15% x $340 billion = $51 BILLION 
Nontransaction deposits = 4% x $120 billion = 4.8 BILLION
Total reserve would be $55.8 billion 
Just need to read :)