Table 29-6.
-Refer to Table 29-6. The Bank of Pleasantville's reserve ratio is
A)6.4 percent.
B)16.7 percent.
C)6.0 percent.
D)15.7 percent.

Name: Table 29-6. -Refer to Table 29-6. The Bank of Pleasantville's reserve ratio is A)6.4 percent. B)16.7 percent. C)6.0 percent. D)15.7 percent.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Table 29-6. 
-Refer to Table 29-6. The Bank of Pleasantville's reserve ratio is
A)6.4 percent. 
B)16.7 percent. 
C)6.0 percent. 
D)15.7 percent.

Quizplus · Accepted Answer

The reserve ratio is calculated by dividing reserves by deposits. In this case, reserves are $100 million and deposits are $1,667 million, so the reserve ratio is $100 million/$1,667 million = 6.0 percent.

Table 29-6. -Refer to Table 29-6. the Bank of Pleasantville's Reserve Ratio