A bank has $200 of reserves and $4,000 of deposits. It is just meeting its desired reserves and has no excess reserves. Thus the desired reserve ratio is
A)$200.
B)25 percent.
C)20 percent.
D)10 percent.
E)5 percent.

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The Answer of A bank has $200 of reserves and $4,000 of deposits. It is just meeting its desired reserves and has no excess reserves. Thus the desired reserve ratio is
A)$200.
B)25 percent.
C)20 percent.
D)10 percent.
E)5 percent.

A Bank Has $200 of Reserves and $4,000 of Deposits