If a Bank Has a Required Reserve Ratio of 20

question 23

Multiple Choice

If a bank has a required reserve ratio of 20% and has required reserves of $300,000,000,how much does the bank hold in deposits?

• A) $33,750,000
• B) $60,000,000
• C) $360,000,000
• D) $1,500,000,000
• E) There is not enough information to solve this problem.

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Definitions:

Civil Service Act

Legislation that established the merit-based system for selecting government officials and employees, aiming to eliminate corruption by making competence and ethics primary criteria.

1883

The year notable for the United States Supreme Court's decision in the Civil Rights Cases, which significantly limited the rights of blacks to use public accommodations.

Federal Bureaucracy

The collection of all national government agencies and institutions that implement federal laws and regulations.

Military Personnel

Members of the armed forces, including soldiers, sailors, airmen, and marines, who serve in the military to protect and defend their country.