Suppose a Bank Has $200,000 in Deposits and $150,000 in Loans

question 66

Multiple Choice

Suppose a bank has $200,000 in deposits and $150,000 in loans. What is its reserve ratio?

• A) 1 percent
• B) 5 percent
• C) 10 percent
• D) 25 percent

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Definitions:

Output Demand

The quantity of a product or service that consumers are willing and able to purchase at various price points.

Immigration Effect

The impact that immigration has on a host country's economy, labor market, culture, and social fabric, both positive and negative.

Market Labor

The supply of available workers in relation to employment opportunities within a given market or industry.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by employees, leading to a stable employment situation.