If a Bank Has $100,000 in Checkable Deposits, Reserves of $20,000

question 47

Multiple Choice

If a bank has $100,000 in checkable deposits, reserves of $20,000, and no excess reserves, then the required reserve ratio is:

• A) 10 percent.
• B) 20 percent.
• C) 25 percent.
• D) 30 percent.
• E) 50 percent.

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Definitions:

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