Table 13-2

-Refer to Table 13-2. If the Hometown Bank is holding $10,000 in excess reserves, then the reserve requirement is
A)2 percent.
B)5 percent.
C)7 percent.
D)10 percent.

Question

Table 13-2
 
-Refer to Table 13-2. If the Hometown Bank is holding $10,000 in excess reserves, then the reserve requirement is
A)2 percent. 
B)5 percent. 
C)7 percent. 
D)10 percent.

Quizplus · Accepted Answer

If the Hometown Bank is holding $10,000 in excess reserves, it means they have more reserves than required. The reserve requirement is typically 10 percent, which means banks must hold 10 percent of their deposits as reserves.

Table 13-2 -Refer to Table 13-2. If the Hometown Bank Is Holding