-Refer to Table 10-1. What is the reserve ratio?
A) 0 percent
B) 20 percent
C) 80 percent
D) 100 percent

Question

-Refer to Table 10-1. What is the reserve ratio?
A) 0 percent 
B) 20 percent 
C) 80 percent 
D) 100 percent

Quizplus · Accepted Answer

The reserve ratio is calculated by dividing the bank's reserves by its total deposits. Without specific numbers from Table 10-1, the correct answer cannot be determined from the information provided. However, if the question implies a typical scenario where the reserve ratio is a percentage of total deposits held in reserve, 20 percent is a common reserve requirement for banks in many scenarios, making option B a plausible choice based on standard banking practices.