Use the following to answer questions.
Exhibit: Acme Bank: Partial Balance Sheet

-(Exhibit: Acme Bank: Partial Balance Sheet) If Acme Bank has no excess reserves, the required reserve ratio is
A) 26.67%
B) 16%
C) 10%
D) There is insufficient information to answer question.

Question

Use the following to answer questions.
Exhibit: Acme Bank: Partial Balance Sheet
 
-(Exhibit: Acme Bank: Partial Balance Sheet) If Acme Bank has no excess reserves, the required reserve ratio is
A) 26.67% 
B) 16% 
C) 10% 
D) There is insufficient information to answer question.

Quizplus · Accepted Answer

The required reserve ratio is the percentage of deposits that a bank must hold as reserves. If Acme Bank has no excess reserves, it means all reserves are required reserves. Typically, the required reserve ratio is around 10% for many banks, which is a common standard.

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