Table 10-1
-Refer to the Table 10-1.What is the reserve ratio?
A) 0 percent
B) 15 percent
C) 85 percent
D) 100 percent

Question

Table 10-1 
-Refer to the Table 10-1.What is the reserve ratio?
A) 0 percent 
B) 15 percent 
C) 85 percent 
D) 100 percent

Quizplus · Accepted Answer

The reserve ratio is defined as the percentage of deposits that banks are required to hold in reserve. In Table 10-1, the required reserves column is $150,000 and the total deposits column is $1,000,000. Therefore, the reserve ratio is:

Reserve Ratio = Required Reserves / Total Deposits
= $150,000 / $1,000,000
= 0.15 or 15%

Therefore, the correct answer is B, with a reserve ratio of 15%.

Table 10-1 -Refer to the Table 10-1.What Is the Reserve Ratio