A bank has 100 million dollars in deposits and $10 million dollars in reserves. The...

80.2K

Verified Solution

Question

Finance

A bank has 100 million dollars in deposits and $10 million dollars in reserves. The required reserve ratio is 10%. There is a deposit outflow of $11 million. What is the shortfall in reserves?

A. -$11.00

B. $0.00

C. $1.10

D. -$9.90

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students