In 2009 banks kept reserves equal to about ________ of their assets.
A) 75 percent.
B) 25 percent
C) 8 percent
D) 50 percent
E) 37 percent

Question

Quizplus · Accepted Answer

In 2009, the required reserve ratio set by the Federal Reserve was 10%, meaning banks were required to hold reserves equal to 10% of their deposits. However, the question asks about reserves as a percentage of assets, not deposits. The ratio of reserves to assets is typically much lower than the ratio to deposits, as assets include loans and securities in addition to deposits. Based on data from the Federal Reserve Bank of St. Louis, in 2009 banks held reserves equal to about 8% of their assets.

In 2009 Banks Kept Reserves Equal to About ________ of Their