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

question 48

Multiple Choice

If actual reserves in the banking system are $40,000, excess reserves are $10,000, and checkable deposits are $240,000, then the legal reserve requirement is

• A) 10 percent.
• B) 12.5 percent.
• C) 20 percent.
• D) 5 percent.