Table 11-2

question 389

Multiple Choice

Table 11-2. An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $9,250. The T-account of the bank is shown below.

-Refer to Table 11-2. The bank's reserve ratio is

• A) 7.50 percent.
• B) 8.12 percent.
• C) 92.50 percent.
• D) 100 percent.

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Definitions:

Neutralization Reactions

Chemical reactions in which an acid and a base react quantitatively to form water and a salt.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms.

Salt

A general term for ionic compounds that result from the neutralization reaction of an acid and a base, commonly used as sodium chloride in cooking.

Sodium Chloride

A compound commonly known as table salt, consisting of sodium and chloride ions.