Use the following to answer
-(Table: Bank Balance Sheet) Based on the table, what is the reserve-deposit ratio at the bank?
A) 3 percent
B) 5 percent
C) 10 percent
D) 15 percent

Question

Use the following to answer  
-(Table: Bank Balance Sheet) Based on the table, what is the reserve-deposit ratio at the bank?
A) 3 percent 
B) 5 percent 
C) 10 percent 
D) 15 percent

Quizplus · Accepted Answer

The reserve-deposit ratio is the fraction of total deposits that a bank keeps in reserve. In this case, the bank's reserves are $1,000 and its deposits are $10,000, so the reserve-deposit ratio is 1,000/10,000 = 0.1, or 10 percent.

Use the Following to Answer