Suppose the Required Reserve Ratio Is 10

question 73

Multiple Choice

Suppose the required reserve ratio is 10%. If a bank has total reserves of $80,000 and checkable deposits of $550,000, what is the amount of the bank's required reserves?

• A) $25,000
• B) $55,000
• C) $80,000
• D) $135,000

---

Definitions:

Technology Control

The management and regulation of the development, application, and dissemination of technology.

Formal Authority

The power given to an individual or entity based on their position within an organization, enabling them to enforce rules and make decisions.

Bureaucracy

A systematic administrative system governing any large organization, characterized by fixed rules, hierarchy, and detailed procedures.

Boundaryless Organization

A type of organization that seeks to eliminate the traditional barriers between departments as well as barriers between the organization and the external environment.