Suppose That the Reserve Ratio Is 7 Percent and That

question 84

Multiple Choice

Suppose that the reserve ratio is 7 percent and that a bank has $2000 in deposits. What are its required reserves?

• A)$100
• B)$120
• C)$140
• D)$160

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Definitions:

New England

A region in the northeastern United States comprising six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, historically significant for its early settlement by Pilgrims.

Federal Liberty

A concept related to the freedoms and rights guaranteed to individuals by a federal government, often found in the context of constitutional discussions.

Civil Liberty

The freedom of citizens to exercise traditional rights such as freedom of speech, assembly, and religion without governmental interference or repression.

John Winthrop

A key figure in the early history of the Massachusetts Bay Colony, serving as its governor multiple times in the early 17th century; remembered for his vision of the colony as a "city upon a hill."