Table 11-5.

-Refer to Table 11-5. The Bank of Pleasantville's reserve ratio is
A) 1 percent.
B) 5 percent.
C) 10 percent.
D) 20 percent.

Question

Table 11-5.
 
-Refer to Table 11-5. 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 is calculated as the required reserves divided by total deposits. In this case, the required reserves are $1,000 and the total deposits are $10,000, so the reserve ratio is 10 percent (1,000/10,000 = 0.10 or 10%).

Table 11-5. -Refer to Table 11-5. the Bank of Pleasantville's Reserve Ratio