Table 29-8
-Refer to Table 29-8. The required reserve ratio is 12 percent. Which of the following is true?
A)This banks reserve ratio is 12 percent. Its excess reserves are $0.
B)This banks reserve ratio is 13.3 percent. Its excess reserves are $120.
C)This banks reserve ratio is 15 percent. Its excess reserves are $240.
D)This banks reserve ratio is 10 percent. Its excess reserves are $300.

Question

Table 29-8 
-Refer to Table 29-8. The required reserve ratio is 12 percent. Which of the following is true?
A)This banks reserve ratio is 12 percent. Its excess reserves are $0. 
B)This banks reserve ratio is 13.3 percent. Its excess reserves are $120. 
C)This banks reserve ratio is 15 percent. Its excess reserves are $240. 
D)This banks reserve ratio is 10 percent. Its excess reserves are $300.

Quizplus · Accepted Answer

The bank's reserve ratio is 13.3 percent, which is greater than the required reserve ratio of 12 percent. This means that the bank has excess reserves of $120.

Table 29-8 -Refer to Table 29-8. the Required Reserve Ratio Is 12