A Reserve Requirement of 25 Percent Would Mean That Each

question 75

Multiple Choice

A reserve requirement of 25 percent would mean that each dollar of reserves could support ____ of demand deposits.

• A)$0.25
• B)$0.75
• C)$1.33
• D)$4.00
• E)$25.00

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Definitions:

Per Hundred

A phrase used to denote or calculate rates, statistics, or proportions out of a hundred.

Percentage

A numerical expression or ratio indicating a portion of 100.

Percent

A mathematical term describing a number or ratio expressed as a fraction of 100.

Improper Fraction

A fraction where the numerator is greater than or equal to the denominator.