If the Desired Reserve Ratio Is 7 Percent and a Bank

question 361

Multiple Choice

If the desired reserve ratio is 7 percent and a bank has $10,000 of deposits,then its desired reserves are

• A)$7.
• B)$700.
• C)$9,300.
• D)$930.
• E)$7,000.

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Definitions:

Indus Civilization

An ancient civilization that flourished in the Indus River Valley, now in Pakistan and northwest India, known for its advanced urban planning and architecture.

Mohenjo-daro

An archaeological site in Pakistan, representing one of the major urban settlements of the Indus Valley Civilization, known for its advanced urban planning and architecture.

Nataraja

A depiction of the Hindu god Shiva as the cosmic dancer who performs his divine dance to destroy a weary universe and make preparations for the god Brahma to start the process of creation.

Harihara

A deity in Hinduism that combines aspects of both Vishnu and Shiva, symbolizing their unity and the encompassing nature of the divine.