Table 21-3.

-Refer to Table 21-3.The reserve ratio for this bank is
A) 0 percent.
B) 20 percent.
C) 80 percent.
D) 100 percent.

Name: Table 21-3. -Refer to Table 21-3.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 21-3.
 
-Refer to Table 21-3.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 calculated as the ratio of required reserves to total deposits. In this case, the required reserves are $600 and the total deposits are $3,000, so the reserve ratio is 20 percent ($600/$3,000).

Table 21-3. -Refer to Table 21-3.The Reserve Ratio for This Bank Is