Suppose That the Reserve Ratio Is 7 Percent and That

question 38

Multiple Choice

Suppose that the reserve ratio is 7 percent and that a bank has $3000 in deposits.What are its required reserves?

• A) $50
• B) $210
• C) $510
• D) $1200

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Definitions:

Rhesus Factor

A protein substance on the surface of red blood cells that can cause immune response differences, significant in blood transfusion and pregnancy.

Abbreviation

A shortened form of a word or phrase, used to simplify writing and speech.

Pneumocystis Carinii Pneumonia

A severe form of pneumonia caused by the fungus Pneumocystis jirovecii, particularly affecting individuals with weakened immune systems.

Abbreviation

A compressed version of a word or phrase intended to save space or prevent redundancy.