If a Bank Has a Required Reserve Ratio of 25

question 89

Multiple Choice

If a bank has a required reserve ratio of 25% and there is $10,000 in deposits,what is the amount of required reserves?

• A) $40,000
• B) $10,000
• C) $0
• D) $2,500
• E) $5,000

---

Definitions:

Grams

A unit of mass in the metric system, equal to one thousandth of a kilogram.

HI

The chemical formula for hydrogen iodide, a diatomic molecule.

KOH

Potassium Hydroxide, a strong alkali used in various chemical processes and as a cleaning agent.