What is the effective cost of the reserve requirement

Reference no: EM131939919

Question: Assuming a required reserve ratio of 5%, interest rate on reserves of 1%, and interest rate on loans of 6%, what is the effective cost of the reserve requirement on a $10,000 deposit? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131939919

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