Suppose That the Reserve Ratio Is 5 Percent and That

question 61

Multiple Choice

Suppose that the reserve ratio is 5 percent and that a bank has $1,000 in deposits.Its reserves are

• A)$5.
• B)$50.
• C)$95.
• D)$950.

---

Definitions:

Software Firm

A company specialized in developing, distributing, and maintaining software products or services.

Confidence

The feeling or belief that one can rely on someone or something; firm trust and self-assurance in one's powers, abilities, or qualities.

Entrepreneurs

Individuals who innovate, create, manage, and assume the risks of a business venture in pursuit of profits and growth.

Administrators

Individuals who are responsible for managing and overseeing the operations of organizations or parts of organizations, ensuring that they function efficiently.