Table 29-4.
The First Bank of Fairfield
-Refer to Table 29-4. The reserve ratio for this bank is
A)8 percent.
B)12.5 percent.
C)87.5 percent.
D)25 percent.

Name: Table 29-4. The First Bank of Fairfield -Refer to Table 29-4. The reserve ratio for this bank is A)8 percent. B)12.5 percent. C)87.5 percent. D)25 percent.
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Question

Table 29-4.
The First Bank of Fairfield 
-Refer to Table 29-4. The reserve ratio for this bank is
A)8 percent. 
B)12.5 percent. 
C)87.5 percent. 
D)25 percent.

Quizplus · Accepted Answer

The reserve ratio is calculated as reserves divided by deposits. If the bank's reserves are 12.5% of its deposits, then the reserve ratio is 12.5 percent.