If a Bank Has a Required Reserve Ratio of 15

question 86

Multiple Choice

If a bank has a required reserve ratio of 15% and has required reserves of $225 million,how much does the bank hold in deposits?

• A) $33.75 million
• B) $210 million
• C) $240 million
• D) $1.5 billion
• E) There is not enough information to solve this problem.

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Definitions:

Duodenum

The first section of the small intestine immediately beyond the stomach, where most chemical digestion takes place.

Gastric Secretion

The process by which the stomach releases substances like hydrochloric acid, enzymes, and mucus, which aid in food digestion.

Distention

The act or condition of being stretched, swollen, or inflated due to pressure from within.

Stomach

Large sac between the esophagus and the small intestine, lying just beneath the diaphragm.