Refer to the information provided in Scenario 10.2 below to answer the questions that follow.
SCENARIO 10.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
-Refer to Scenario 10.2. What is the required reserve ratio?
A) 4%
B) 5%
C) 8%
D) 10%

Question

Refer to the information provided in Scenario 10.2 below to answer the questions that follow.
SCENARIO 10.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up. 
-Refer to Scenario 10.2. What is the required reserve ratio?
A) 4% 
B) 5% 
C) 8% 
D) 10%

Quizplus · Accepted Answer

The required reserve ratio is typically set by the central bank and is often around 10% for many economies, which is a common standard.

Refer to the Information Provided in Scenario 10