If the Required Reserve Ratio Is 10 Percent and Banks

question 98

Multiple Choice

If the required reserve ratio is 10 percent and banks are holding no excess reserves, and in addition deposits are $1000, what are the total reserves?

• A)$1000
• B)$10
• C)$90
• D)$100

---

Definitions:

Multiple Suppliers

The practice of sourcing goods or services from various providers to diversify risk and leverage competitive advantages.

Available Water Supply

The amount of water resources that are accessible for use by a community or region.

Proximity to Markets

The closeness of a business or production site to its customers or consumers, which can significantly affect logistics, delivery times, and overall competitiveness.

Tax Incentives

Financial benefits offered by governments to encourage or discourage certain economic activities.