If Actual Cash Reserves in the Banking System Are $40,000

question 149

Multiple Choice

If actual cash reserves in the banking system are $40,000, excess reserves are $10,000, and demand deposits are $240,000, then the desired reserve ratio:

• A)is 10 percent.
• B)is 12.5 percent.
• C)is 20 percent.
• D)cannot be determined from this information.

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