Table 21-5.

-Refer to Table 21-5.The Bank of Pleasantville's reserve ratio is
A) 1 percent.
B) 5 percent.
C) 10 percent.
D) 20 percent.

Question

Table 21-5.
 
-Refer to Table 21-5.The Bank of Pleasantville's reserve ratio is
A) 1 percent. 
B) 5 percent. 
C) 10 percent. 
D) 20 percent.

Quizplus · Accepted Answer

The reserve ratio can be calculated by dividing the total reserves by the total deposits. In this case, the total reserves are $200 million and the total deposits are $2,000 million. Dividing these numbers gives a reserve ratio of 10 percent. Therefore, the correct answer is C.

Table 21-5. -Refer to Table 21-5.The Bank of Pleasantville's Reserve Ratio Is