Answer:
20%
Explanation:
The total reserves of banks is $4 billion
Since the banks have no excess reserves then, the total amount of required reserves is $4 billion
The checkabke deposits is $20 billion
Therefore, the required reserve ratio can be calculated as follows
Required reserve ratio= $4 billion/$20 billion
= 0.20×100
= 20%
Hence the required reserve ratio is 20%
