Another economics question....?

Question

Suppose total deposits in the First Bank of Commerce are $100,000 and required reserves are $10,000. Based on this information, the required reserve ratio is:

A) 0.9. B) 10. C) 1. D) 0.10.

Answer 1

100,000/10,000

= 10

ans is B) 10

Answer 2

D) 0.10. (this should be expressed in percents as 10%)

Just divide reserves for deposits: $10,000 /$100,000 =0.10