Table 11-3.

-Refer to Table 11-3. The reserve ratio for this bank is
A) 0 percent.
B) 20 percent.
C) 80 percent.
D) 100 percent.

Name: Table 11-3. -Refer to Table 11-3. The reserve ratio for this bank is A) 0 percent. B) 20 percent. C) 80 percent. D) 100 percent.
Brand: Quizplus
Rating: 4.7 (32 reviews)

Question

Table 11-3.
 
-Refer to Table 11-3. 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 by dividing reserves by deposits. In this case, reserves are $400 and deposits are $2,000, giving a reserve ratio of 0.20, or 20%. Therefore, the correct answer is B.

Table 11-3. -Refer to Table 11-3. the Reserve Ratio for This Bank