Question

If there is a 30% reserve requirement on a $1,000 deposit, how much must be set aside as a member bank reserve?

Answer 1

$300

Explanation:

If there is a 30% reserve requirement on a $1,000 deposit, there must be $300 set aside as a member bank reserve.

30% of $1000 = $300

Answer 2

$300

Explanation:

30% of $1000 is ...

0.30 × $1000 = $300