Table 29-9
Metropolis National Bank is currently holding 2% of its deposits as excess reserves.
-Refer to Table 29-9. Metropolis National Bank is currently holding 2% of deposits as excess reserves. What is the reserve requirement?
A)12 percent
B)10 percent
C)8 percent
D)6 percent

Question

Table 29-9
Metropolis National Bank is currently holding 2% of its deposits as excess reserves. 
-Refer to Table 29-9. Metropolis National Bank is currently holding 2% of deposits as excess reserves. What is the reserve requirement?
A)12 percent 
B)10 percent 
C)8 percent 
D)6 percent

Quizplus · Accepted Answer

The bank is holding 2% as excess reserves, which means it is holding more than the required reserves. If the total reserves are 12% (10% required + 2% excess), the reserve requirement is 10%.

Table 29-9 Metropolis National Bank Is Currently Holding 2% of Its Deposits