Table 29-7.
-Refer to Table 29-7. If the Bank of Springfield has lent out all the money it can given its level of deposits, then what is the reserve requirement?
A)8.1 percent
B)11.0 percent
C)12.4 percent
D)89.0 percent

Question

Table 29-7. 
-Refer to Table 29-7. If the Bank of Springfield has lent out all the money it can given its level of deposits, then what is the reserve requirement?
A)8.1 percent 
B)11.0 percent 
C)12.4 percent 
D)89.0 percent

Quizplus · Accepted Answer

If the bank has lent out all the money it can, then its reserves are equal to the reserve requirement. The reserve requirement is calculated as reserves divided by deposits. Given the choices, 11.0 percent is the most plausible reserve requirement.

Table 29-7. -Refer to Table 29-7. If the Bank of Springfield Has