If a Bank Has a Required Reserve Ratio of 10

question 137

Multiple Choice

If a bank has a required reserve ratio of 10% and has required reserves of $100,000,000,how much does the bank hold in deposits?

• A) $10,000,000
• B) $110,000,000
• C) $1,000,000,000
• D) $1,500,000,000
• E) There is not enough information to solve this problem.

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Definitions:

Acceptance Effective

The point in time when an agreement to the terms of an offer is communicated by the offeree to the offeror, resulting in a legally binding contract.

Dispatched

Sent off to a destination or for a specific purpose, often used in the context of sending out goods, documents, or personnel.

Electronic Means

Utilization of digital technology or devices to perform actions or provide services.

Lease Contracts

Agreements in which one party grants another the right to use property or equipment for a specified time in exchange for payment.