Given the Following Information About Metropolis Bank The Required Reserve Ratio Must Be
A)75 Percent

question 7

Multiple Choice

Given the following information about Metropolis Bank: $\begin{array}{lr}\text { Bank Deposits } & \$ 50,000 \\\text { Loans } & 17,500 \\\text { Required Reserves } & 30,000 \\\text { Excess Reserves } & 2,500\end{array}$
The required reserve ratio must be

• A)75 percent.
• B)60 percent.
• C)30 percent.
• D)15 percent.

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Definitions:

Bond

A fixed-income investment in which an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Sell

To sell means to exchange a product or service for money or other goods.

Serial Bonds

Bonds issued in a series, each one of which has a different maturity date and thus comes due at a different time.

Maturities

The term dates on which debts or investments are due to be paid or settled.