A Bank Has $200 of Reserves and $4,000 of Deposits

question 27

Multiple Choice

A bank has $200 of reserves and $4,000 of deposits. It is just meeting its desired reserves and has no excess reserves. Thus the desired reserve ratio is

• A) 10 per cent.
• B) 5 per cent.
• C) $200.
• D) 25 per cent.
• E) 20 per cent.

---

Definitions:

Project Plan

A formal document designed to guide the control and execution of a project, including detailed information about its scope, objectives, and resources.

Timeline

A graphical representation of a sequence of events arranged chronologically, often used to visualize historical, project, or life events.

Negotiating

The process of discussing something with someone in order to reach an agreement or compromise.

Striking

Striking involves workers collectively ceasing work and engaging in protest, typically to demand better wages, conditions, or rights from their employers.