Given the following information about Metropolis Bank: $\begin{array}{lr}
\text { Bank Deposits } & \$ 50,000 \
\text { Loans } & 17,500 \
\text { Required Reserves } & 30,000 \
\text { Excess Reserves } & 2,500
\end{array}$
The required reserve ratio must be
A)75 percent.
B)60 percent.
C)30 percent.
D)15 percent.

Question

Given the following information about Metropolis Bank: $\begin{array}{lr}
\text { Bank Deposits } & \$ 50,000 \
\text { Loans } & 17,500 \
\text { Required Reserves } & 30,000 \
\text { Excess Reserves } & 2,500
\end{array}$
 The required reserve ratio must be
A)75 percent.
B)60 percent.
C)30 percent.
D)15 percent.

Quizplus · Accepted Answer

The required reserve ratio is calculated by dividing the required reserves by the total deposits: $ \frac{30,000}{50,000} = 0.60 $ or 60 percent.

Given the Following Information About Metropolis Bank The Required Reserve Ratio Must Be A)75 Percent

Given the Following Information About Metropolis Bank The Required Reserve Ratio Must Be
A)75 Percent