The required reserve ratio ranges from
A) 0 to 7 percent.
B) 0 to 3 percent.
C) 3 to 30 percent.
D) 0 to 10 percent.

Question

Quizplus · Accepted Answer

The required reserve ratio ranges from 0 to 10 percent, with the exact percentage determined by the Federal Reserve. Option A is incorrect because the required reserve ratio can be higher than 7 percent, especially during times of economic stability. Option B is incorrect because the required reserve ratio can be higher than 3 percent. Option C is incorrect because the required reserve ratio can be lower than 30 percent.

The Required Reserve Ratio Ranges from