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

Question

Quizplus · Accepted Answer

The required reserve ratio, which is the fraction of deposits that banks are required to keep on hand and not lend out, can vary widely depending on the country and the specific type of deposit. However, a range of 0 to 10 percent is a common regulatory standard in many banking systems, including the United States. This range allows for flexibility in monetary policy and banking operations.

The Required Reserve Ratio Ranges from