If Trustus Bank has a reserve ratio of 25 per cent and keeps $100 in reserve, then Trustus's deposits are:
A)$400
B)$25
C)$2500
D)$5000

Name: If Trustus Bank has a reserve ratio of 25 per cent and keeps $100 in reserve, then Trustus's deposits are: A)$400 B)$25 C)$2500 D)$5000
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Quizplus · Accepted Answer

The reserve ratio is the fraction of deposits that a bank holds as reserves. If Trustus Bank has a reserve ratio of 25% (or 0.25) and keeps $100 in reserve, then the total deposits can be calculated as $100 / 0.25 = $400.

If Trustus Bank Has a Reserve Ratio of 25 Per