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:

Labor-Force Participation

The percentage of the working-age population that is engaged in the labor market, either employed or actively seeking employment.

Minimum Wage

The lowest legally permissible hourly wage that companies can pay to employees.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and analyzing essential data related to labor economics, including employment, unemployment, and price statistics.

Labor Force

The total number of people who are currently employed or actively seeking employment within an economy.