Suppose a Bank Has $200,000 in Deposits and $150,000 in Loans

question 66

Multiple Choice

Suppose a bank has $200,000 in deposits and $150,000 in loans. What is its reserve ratio?

• A) 1 percent
• B) 5 percent
• C) 10 percent
• D) 25 percent

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Definitions:

Otoliths

Small calcified structures found in the inner ears of vertebrates, important for balance and hearing.

Rod Photoreceptors

Cells in the retina of the eye responsible for vision in low light conditions.

Rhodopsin

Light-absorbing molecule in rod cells and cone cells that contains a pigment and the protein opsin.

Light Ray

A line or path along which light energy travels in a straight line, used to model the direction and behavior of light.