Suppose there is only one kind of deposit in the banking industry, a checking deposit.?

Question

Suppose Bank A (one of many banks in the economy) holds deposits of $160,000 and total reserves of $10,000, of which $8,000 are required reserves.

What is the required reserve ratio in this economy?

A. 2%

B. 5%

C. 11%

D. 8%

E. 80%

Answer 1

Huh, bro??