Bank A has $100 million in deposits, $15 million in required reserves, and $85 million in loans. Bank A's reserve ratio is:
A) 10%.
B) 15%.
C) 20%.
D) 75%.

Name: Bank A has $100 million in deposits, $15 million in required reserves, and $85 million in loans. Bank A's reserve ratio is: A) 10%. B) 15%. C) 20%. D) 75%.
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Question

Quizplus · Accepted Answer

The reserve ratio is the required reserves divided by the deposits: 15/100 = 0.15 or 15%. Therefore, the answer is choice B.

Bank a Has $100 Million in Deposits, $15 Million in Required