Suppose a bank's reserve ratio is 10 percent and the bank has $2,000 in deposits.Its reserves amount to
A) $20.
B) $200.
C) $400.
D) $1,800.
Correct Answer:
Verified
Q1: Under a fractional-reserve banking system,banks
A)hold more reserves
Q7: A bank loans Kellie's Print Shop $350,000
Q55: If the reserve ratio increased from 10
Q149: Suppose the banking system currently has $300
Q173: If you deposit $100 of currency into
Q182: If the central bank in some country
Q250: Suppose a bank has a 10 percent
Q251: A bank's liabilities include
A) both its reserves
Q256: The money multiplier equals
A) 1/R,where R represents
Q259: Suppose a bank has $10,000 in deposits
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents