If the desired reserve ratio is 7 per cent and a bank has $10,000 of deposits,then its desired reserves are
A)$7,000.
B)$9,300.
C)$700.
D)$930.
E)$7.

Name: If the desired reserve ratio is 7 per cent and a bank has $10,000 of deposits,then its desired reserves are A)$7,000. B)$9,300. C)$700. D)$930. E)$7.
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Question

Quizplus · Accepted Answer

The desired reserves for a bank with $10,000 of deposits and a desired reserve ratio of 7% can be calculated as:

$10,000 x 0.07 = $700

Therefore, the correct answer is C) $700.

If the Desired Reserve Ratio Is 7 Per Cent and a Bank