Refer to the information provided in Table 10.5 below to answer the questions that follow.
Table 10.5
-Refer to Table 10.5. The required reserve ratio is 10%. If the Bloomington Bank is meeting its reserve requirement and has no excess reserves, its reserves equal

Question

Refer to the information provided in Table 10.5 below to answer the questions that follow.
Table 10.5 
-Refer to Table 10.5. The required reserve ratio is 10%. If the Bloomington Bank is meeting its reserve requirement and has no excess reserves, its reserves equal

Quizplus · Accepted Answer

The required reserve ratio is 10%, meaning the bank must hold 10% of its deposits as reserves. If the bank is meeting its reserve requirement with no excess reserves, its reserves are exactly 10% of its deposits. Without the details from Table 10.5, we can deduce that the correct answer must be calculated based on 10% of the bank's deposits. Since the specific deposit amount is not provided in the question, the correct answer (C) $120 suggests that the bank's deposits are $1200 (because 10% of $1200 is $120).

Refer to the Information Provided in Table 10