Refer to the information provided in Table 10.1 below to answer the questions that follow.
Table 10.1
-Refer to Table 10.1. The required reserve ratio is 25%. If the First Charter Bank is meeting its reserve requirement and has no excess reserves, its reserves equal
A) $100.
B) $200.
C) $300.
D) $600.

Question

Refer to the information provided in Table 10.1 below to answer the questions that follow.
Table 10.1 
-Refer to Table 10.1. The required reserve ratio is 25%. If the First Charter Bank is meeting its reserve requirement and has no excess reserves, its reserves equal
A) $100. 
B) $200. 
C) $300. 
D) $600.

Quizplus · Accepted Answer

The required reserve ratio is 25%, meaning the bank must hold 25% of its deposits as reserves. If the bank is meeting its reserve requirement with no excess reserves, its reserves are exactly 25% of its deposits. Without the specific figures from Table 10.1, we can deduce that the correct answer must be based on the information provided in the question. Since the question does not provide the amount of deposits, we cannot calculate the exact figure. However, given the choices, if the bank's reserves equal $200 and the reserve requirement is 25%, this implies that the total deposits are $800 ($200 is 25% of $800), which aligns with the bank meeting its reserve requirement with no excess reserves. This explanation is speculative due to the lack of data from Table 10.1, but based on the information given in the question, B is chosen as the correct answer.

Refer to the Information Provided in Table 10