Suppose That the Reserve Ratio Is 7 Percent and That

question 84

Multiple Choice

Suppose that the reserve ratio is 7 percent and that a bank has $2000 in deposits. What are its required reserves?

• A)$100
• B)$120
• C)$140
• D)$160

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Definitions:

FUTA

The Federal Unemployment Tax Act, a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.

SUTA

State Unemployment Tax Act, a payroll tax paid by employers based on the state unemployment insurance rates and the taxable wages of their employees.