If a Bank Had Demand Deposits of $50 Million and It

question 251

Multiple Choice

If a bank had demand deposits of $50 million and it faced a 25 percent required reserve ratio, it would be required to have how many reserves?

• A)​$50 million
• B)​$37.5 million
• C)​$25 million
• D)​$12.5 million

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Definitions:

Platter

A rigid, flat surface in a hard disk drive where data is magnetically stored.

Spindle

A rotating axis of a machine, which tools or workpieces attach to for machining purposes.

Magnetic Disk Storage

Magnetic disk storage is a type of data storage that uses magnetic storage to record and retrieve digital information using one or more rotating disks.

Floppy Disk

A magnetic storage medium encased in a square or rectangular plastic shell, used primarily in the late 20th century for storing computer data.