Answer the indicated question on the basis of the information in Table 14.1.Each question is based on the original balance sheet.

-Based on the information in Table 14.1,the required reserve ratio is:
A) 8.7 percent.
B) 10.0 percent.
C) 13.3 percent.
D) 66.7 percent.

Question

Answer the indicated question on the basis of the information in Table 14.1.Each question is based on the original balance sheet.
 
-Based on the information in Table 14.1,the required reserve ratio is:
A) 8.7 percent. 
B) 10.0 percent. 
C) 13.3 percent. 
D) 66.7 percent.

Quizplus · Accepted Answer

The required reserve ratio is calculated by dividing the total reserves by the total deposits. If the table shows that for every $100 in deposits, the bank must keep $10 in reserves, then the required reserve ratio is 10/100 = 10.0 percent.

Answer the Indicated Question on the Basis of the Information