Multiple Choice
In Wellville, the money supply is $80,000 and reserves are $12,800. Assuming that people hold only deposits and no currency, and that banks hold only required reserves, what is the required reserve ratio?
A) 12 percent
B) 14.5 percent
C) 16 percent
D) 29 percent
Correct Answer:
Verified
Correct Answer:
Verified
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