A Bank Has $200 of Reserves and $4,000 of Deposits

question 194

Multiple Choice

A bank has $200 of reserves and $4,000 of deposits.It is just meeting its desired reserves and has no excess reserves.Thus the desired reserve ratio is

• A)10 percent.
• B)20 percent.
• C)25 percent.
• D)5 percent.
• E)$200.

---

Definitions:

Judicial Circuits

Geographic areas in which courts have jurisdiction; in the U.S., these can refer to the regional circuits of the Federal Courts of Appeal.

Congress

The national legislative body of the United States, consisting of two houses: the Senate and the House of Representatives.

Court of Appeals

An intermediate level of the judiciary system where decisions from lower courts can be contested and reviewed.

Quorum

The minimum number of members required to be present at a meeting to lawfully conduct business.