Table 16-3.
-Refer to Table 16-3. The reserve ratio for this bank is
A)0 percent.
B)20 percent.
C)80 percent.
D)100 percent.

Name: Table 16-3. -Refer to Table 16-3. The reserve ratio for this bank is A)0 percent. B)20 percent. C)80 percent. D)100 percent.
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Question

Table 16-3. 
-Refer to Table 16-3. The reserve ratio for this bank is
A)0 percent. 
B)20 percent. 
C)80 percent. 
D)100 percent.

Quizplus · Accepted Answer

The reserve ratio is the ratio of required reserves to total deposits. In this case, the required reserves are $20,000 and the total deposits are $100,000. Therefore, the reserve ratio is (20,000/100,000) = 0.20 or 20 percent.

Table 16-3. -Refer to Table 16-3. the Reserve Ratio for This Bank